Alternative Energy Corporation (OTC:TAEC
, TAEC message board
) has been moving up at full speed over the past days. After a few significant gains,
yesterday the stock added the next 5.71% to its price, while its traded volume remained high.
Following the records, the price jump has an absolutely reasonable explanation - promotions and news. The campaign was held a week ago, when TAEC was promoted by Mister X. As a result, the stock price flew up and it soared approximately 180% for a day. Since then, TAEC keeps moving up.
Yet, the up trend was supported by another factor - the positive news by the company. Last Friday, TAEC reported it has entered into a Stock Purchase Agreement with Steinhov Resources. Pursuant to the agreement, the company sold an aggregate of 16,406,915 shares of its common stock to Steinhov for an aggregate purchase price of $100,000.
Being reported, the announcement pumped up the stock price additionally. Though, today another positive news has just come up. According to it, TAEC has found a new expanded biofuels strategy that encompasses other alternative means of producing biofuels, which could bring higher revenues to the company.
So far, so good. The problem is that the same cannot be said for the financials of TAEC.
The company's latest 10-Q shows much higher amount of liabilities than current assets, accompanied by an impressive net loss and huge stockholders' deficit. Also, there is a poor amount of cash and enormous accumulated deficit that TAEC is not able to cover.
As the company is not generating any revenues, its existence has been placed under a going concern and is now highly dependent upon additional financing.