Martin Tsvetkov

Debt-Laden Avantair, Inc. (OTC:AAIR) Loses 20% in Market Value

by Martin Tsvetkov April 10, 2012
AAIR_chart.pngAvantair, Inc. (OTC:AAIR) lost a great deal of its market value after AAIR stock resumed trading yesterday. A record-breaking volume exerted a huge selling pressure on the stock.

Closing at $0.75, AAIR went down $0.18, or 19.35% from its previous close on Apr. 5. However, with 765 thousand shares changing hands, AAIR set a new six-month volume record. As it seems, the huge volume had quite an adverse impact on AAIR's market value.

Apart from the hiring of a new marketing and brand communications agency called LIPMAN, AAIR has issued no substantial corporate updates for quite a while now. In fact, we have seen no news ever since AAIR published its financial results for the quarter ended Dec. 31, 2011 on Feb. 8.

Established in 2003, Avantair, Inc. is a fractional company occupying the private aircraft industry.

AAIR_logo.jpgWhen it comes to financial strength, however, AAIR does not rank high. The company closed the quarter ended Dec. 31, 2011 with a working capital gap of almost $69 million. If the company were to file for bankruptcy, it would be utterly unable to pay off all of its obligations as its total liabilities exceed its total assets by 30%. Last but not least, AAIR reported a quarterly net loss of $872 thousand. So, as of now, there are no signs that the company will stop incurring losses. Until then, its stock will hardly become the next top gainer.

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