Borislav Tonev

American Soil Technologies, Inc. (OTCMKTS:SOYL) Gets Some Free Promotional Coverage

by Borislav Tonev August 12, 2013
SOYL.pngThose of you who have been around penny stocks for quite a while know that thinking twice before listening to the pumpers is definitely a good call. We've seen numerous emails saying that this or that company has huge potential when in fact, the featured venture is really struggling for breath and that inevitably leads to some horrific results, but even though we're somewhat used to seeing promises for future growth of enterprises that are on their way to the bottom, the newsletters still manage to surprise us with how badly they choose their picks sometimes. American Soil Technologies, Inc. (OTCMKTS:SOYL, SOYL message board) is a classic example.

Exactly one minute before the opening bell on Thursday, we received the first email on SOYL from Top Stock Tips and it basically opened the floodgates for other pumpers. By noon we had intercepted around twenty alerts coming from a range of promoters, the most prominent of which are The Stock Psycho a/k/a Darth Trader and Stock Mister and SOYL's chart definitely shows that the results of all the touting were profound.

The ticker had been barely traded for the last couple of months and the last price recorded in July was $0.0034. Yet, it opened Thursday's session at $0.014 made an astonishing run all the way to $0.47 after which it came down to earth closing the day at $0.085. Apart from the people who got a bit carried away and bought some stock at the high of the day, everyone was happy. More surprisingly, it would appear that the artificial excitement continued to push the ticker up during the first minutes of Friday's session. The opening bell saw SOYL above the previous close, it made a dip about half an hour later after which it ran high again. By the end of the day, however, it had fallen down, finishing the crazy session at $0.077.

This means that SOYL's current market cap stands at around $5.24 million and, unfortunately, we can't say that you get a lot of bang for your buck. In fact, the latest financial report covering the first three months of 2013 shows some pretty disappointing figures. Here's what we're talking about:

  • cash: $1,273
  • current assets: $13 thousand
  • current liabilities: $7.6 million
  • quarterly revenue: $11 thousand
  • quarterly net loss: $147 thousand
  • accumulated deficit: $28 million

With those figures in mind, you can safely say that there are some big question marks around SOYL's future, and when you consider the fact that there are a couple of legal proceedings that have yet to be completely settled, things look even shakier.

Some of you might point out that SOYL does look like an operational venture with some figures under the revenues section, which is more than can be said about most of the promoted penny stocks and you'd be right. Even so, there are still some problems. The money generated from the sales of their polymer soil amendments has decreased by 46% year-over-year and according to the 10-Q, the reason for this is a "temporary loss of sales of all but one of our proprietary products". There are no further details and since there are no press releases, we have no idea if the distribution of the rest of the turf additives have been renewed.

All in all, SOYL doesn't appear to be a good long-term investment at this point, and some of you are probably wondering why the pumpers decided to pick this particular penny stock for a full-blown pump. The answer, as is often the case, lies in the fine print found at the bottom of the emails.

8ANSU.pngIf you check it out, you'll see that none of the pumpers taking part in the campaign has been compensated, which could only mean one thing - they are trying to improve their track records a bit. When you have that in mind, you'll see that their choice of company is not that illogical. Trading has been pretty much non-existent before the campaign started, the public float is probably quite small which could account for the massive jump on Thursday, and, when you think about it, SOYL is actually remarkably similar to another track-record-improving company from last week - Amanasu Techno Holdings Corp (OTCMKTS:ANSU). You can see from their chart that ANSU too made an eye-popping run which was followed by a lot of fluctuations and, ultimately, a value of more than $1 per share. This sounds good, but if you read through our articles on ANSU, you'll see that just like SOYL, they really are struggling which means that the impressive potential gains yielded from the two ventures could easily turn into massive losses at any time. Make sure you have this in mind before making any investment decisions.

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