Georgi Kamburov

PTA Holdings, Inc. (OTCMKTS:PTAH) Comes Crashing Down

by Georgi Kamburov August 22, 2013
PTAHchart.pngAfter sliding towards the bottom for most of the year and reaching well into triple zero territory PTA Holdings, Inc. (OTCMKTS:PTAH, PTAH message board) finally got a breath of fresh air. Last week they began a steep climb up the chart rising from as low as $0.0003 on August 12 to as high as $0.0028 this Wednesday. Last week also saw the absolutely amazing session when investors traded more than 300 million shares and PTAH surged by 125% in a single day.

Such display of enthusiasm about the future of the company was sparked by their financial results for the second quarter of 2013. In the quarterly report they disclosed having:

  • $3464 cash
  • $455 thousand total current assets
  • $389 thousand total current liabilities 
  • $1.1 million income
  • $57 thousand net income

The company has a positive working capital, has started to generate respectable revenue numbers and has finally achieved profitability. It seems that the decision to exchange their ProFlow subsidiary for Kingsley Logistics Group in June 2012 has worked out great for them. Since then they have acquired two more companies - Notford LLP., another logistics company and Eggspress LLP. who are a refrigerated motor carrier. Due to the recent positive results PTAH are also looking to further expand their business with new acquisition.

As is often the case when dealing with even the most promising pennystocks the share structure of the company certainly raises some concerns. PTAH just recently doubled the amount of their authorized shares from 900 million to 1.8 billion. Not to mention that this quarter another 300 million shares were issued bringing the total outstanding amount to more than 900 million.

Even more dilution is to be expected due to the almost non-existent cash reserves and the convertible notes owed by the company. Maybe some of the owners of the freshly printed shares decided to take profits while then can and yesterday right before closing time the stock was crushed under a massive dumping. As a result 29% of its value was gone and the ticker returned back to $0.0019.

34ETEKchart.pngDespite its encouraging results PTAH remain a risky venture to put your money in. With such a low price per share the stock is extremely volatile.

Yesterday shareholders of Eco-Tek Group, Inc. (OTCMKTS:ETEK) suffered an even worse day when the company bombed by more than 40%. Today is shaping out to be equally bad with ETEK going further down by 30% in early trading. Blue Calypso, Inc. (OTCBB:BCYP) showed a much better performance and surged by 35% to close at $0.173.

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