Borislav Tonev

Exlites Holdings Int (OTCMKTS:EXHI) Steps Onto The Scene

by Borislav Tonev August 13, 2013
EXHI.pngThere was quite a lot of commotion around Exlites Holdings Int (OTCMKTS:EXHI, EXHI message board) yesterday. We have managed to intercept around fifty promotional emails which in turn means that the daily volume amounted to no less than 20 million shares, making EXHI one of the most heavily traded tickers of the day. When the closing bell rang, the price stood at $0.077 which means that the shares are now around 18% dearer compared to Friday's value. Sounds good, doesn't it?

It does, if, say, you owned some stock from last week. If you jumped in yesterday, however, there's a good chance that you might not be so happy. The reason for this is the intraday chart. If you check it out, you'll see that EXHI opened the session at around $0.08, made an impressive run reaching as high as $0.21 after which it came crashing down finishing the day below the opening bid. Still, the pump continues and emails are flying around as we speak, so the million-dollar question now is: "Will EXHI manage to perform in the days to come?".

Well, as is the case with virtually every pump out there, the artificial hype could urge some more interest and that in turn might keep the price afloat in the days to come, but what about long term performance? We decided to do some due diligence and find out.

Let's start with the pumpers' claims. Too Nice Stocks (TNS) are the ones who got the biggest compensations of all the outfits that are in on the campaign at the moment ($250,000) and they said in their first email that the company "has been supplying their customers/patients, medical professionals, and healthcare clinics with quality medical equipment and supplies for many years". They say that the sales are done both through a retail network and over the internet so we headed straight to EXHI's website to check out the range of products.

We must say that it's rather disappointing. As you can see from this link, there are only six products on sale at the moment and while diapers and sting-free wipes can also be qualified as "medical equipment", we were expecting something else. We're not sure about the "for years" part of TNS' narrative as well. A quick check on the Internet reveals that EXHI's website was actually set up no more than two and a half months ago.

At this point, the question marks around EXHI's long-term success are quite a lot. But let's continue nevertheless and see if there is something else to be found.

The filings certainly won't give you a whole lot of information but at least you can see that they have some serious financial problems. Here are the most important figures as of April, 2013:

  • cash: $9 thousand
  • current assets: $14 thousand
  • current liabilities: $136 thousand
  • no revenue
  • quarterly net loss: $7 thousand

From the filings we can also see that their CEO at the moment is called Claire Singleton, and we must say that she's something of a celebrity when it comes to shady penny stock companies. As well as being at the helm of EXHI, she is also in charge of Tenguy World Intl (OTCMKTS:TGWI) and she was once a Director of Life Design Station (OTCMKTS:LDSI) and Direct Equity Intl (OTCMKTS:DEQI). At the moment she also serves as a Manager at Grand Perfecta Inc (OTCMKTS:GPIW). Since we mentioned GPIW, we should also point out that they use the same company headquarters as EXHI, which, by the way, appears to be a residential building.

EXHI_logo.pngThe discrepancies around EXHI are way too many at this point and the promotional pressure makes the threat of a sudden and violent correction all the more dangerous. That's why doing your due diligence and weighing the risks carefully before making any decisions is absolutely essential.

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