Anastas Gegov

Dumping of Stock Crushes the Price of Augme Technologies Inc (OTCBB:AUGT)

by Anastas Gegov July 12, 2013
7AUGT_chart.pngThe price of Augme Trechnologies Inc (OTCBB:AUGT, AUGT message board)'s stock is at an all time low. After the stock went below one dollar in the end of 2012, plummeted through the $0.50 mark it is now scrubbing the floor of the charts even though the company is operating, generating revenue and has decent financials.

AUGT stock has been having a bad time for quite a while now as it is sliding lower and lower in the charts, even thought they are in a decent financial state, making a revenue, have optimistic press releases and fortunately they haven't been pumped from September 2011.

Despite the fact that their press releases seem to be optimistic, the news are mainly focused on hiring new people, promoting key executives and meetings with shareholders, with only little information of new projects. This might be the reason that their stock is going down slowly but surely. Yesterday the price of AUGT shares made its biggest percentile movement since the beginning of the year and yes, you guessed it, it was in a negative direction.

AUGT lost 32% in yesterday's trade session being traded well above their average volume of 306 thousand with a total of 3.3 million shares that switched hands. They opened below their previous day's close of $0.412, at $0.355 and the dumping commenced, which immediately had a negative effect on the price, as the stock had come to the day's low of $0.26 by noon.

987LOGO.pngThe amount of shares that were traded in the first hour of the session made up the bigger part of to total volume for the day. The whopping 3.3 million traded shares made the total trade value come at around $988 thousand and we are sure that quite a few of the insiders dumping their stock were happy with their piece of the pie.

Even though AUGT's press releases are optimistic and the CEO is discussing the plans they have for the rest of the fiscal 2014 from which the first quarter ended May 31, 2013 it seems like dumping of stock and the latest financial report are discouraging investors and the price is dropping hard reaching an all time low. Speaking of quarterly financials let's take a look at the numbers of prime interest from the above mentioned one.

 

  • cash: $1.4 million
  • total assets: $71 million
  • total liabilities: $12 million
  • revenue: $5.8 million
  • net loss: $6 million

 

Most of it looks OK, but when you take a look at the same period last year you will see that nothing much has changed since then. In fact when we took a look at their annual report we saw the bigger picture. The discouraging part about their annual report is that, indeed their revenue has grown more than double, but so have the expenses and the net loss.

5BMIX_chart.pngThe fact that AUGT are still not managing to operate a profitable business makes their stock risky. Until further developments, be sure to do your due diligence and weigh out the risks, because for now the situation doesn't look too rosy even when we consider the fact that they have a good amount of cash on hand as well as a lot of assets, combined with low liabilities.

Yesterday, we wrote about Brazil Minerals Inc (OTCBB:BMIX) and how their session started in a bad way after 5 days of upward movement in their stock's price. Well, it didn't only start bad, but it ended with 27% lost from BMIX's value, closing the session at $0.185. Another company that had a bad day yesterday is Quantum International Corp (OTCMKTS:QUAN) who are ending up in the red for the past 3 sessions with 19% down yesterday, currently nesting at $0.226.

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