Despite two paid promotions and an announced acquisition, Airborne Security & Protective Services, Inc. (PINK:ABPR
, ABPR message board
) lost more than half its value yesterday on the highest trading volume ever.
Two promoters attempted at least to keep the current price level of ABPR yesterday. The newsletters that marketed the shares were paid for, but the exact amount of the compensation was not disclosed. One of the promoters even gave a clever investment idea about ABPR, saying to his clients that they should "catch it on dips", not be too greedy and be happy even with a 5% return.
It was probably not to be expected that the profit taking will be of such a scale, or that the willingness to buy will expire that quickly. ABPR dropped down shortly after the market opened and closed the session at $0.0211, losing 57.8% of its previous day value. Share turnover was the highest ever since the shares are traded on the Pink Sheets market.
Airborne Security has no SEC filings and the latest unaudited financial report published on the OTC markets page does not suggest that the current market cap or the company's press released are adequate.
As of end September 2010, ABPR had around $100,000 in total assets, $16,000 in cash and over $2 million in current liabilities. Half of the debt was in convertible notes, suggesting coming dilution, and the reported revenues for the nine months ended September 2010 totaled less than half a million dollars. On the background of that dull numbers, Monday afternoon's press release sounds pretty optimistic. The company claimed to have acquired the assets of a Miami-based security company employing 50 trained professionals, holding contracts for $960,000 in yearly revenues and having big expansion plans.
Traders could now only guess how the company paid for that acquisition, or how it will pay for the "number of other acquisitions" that are supposed to be announced in the next several weeks.