Borislav Tonev

Swingplane Ventures, Inc. (OTCBB:SWVI) Is Back

by Borislav Tonev October 4, 2013
6SWVI.pngSwingplane Ventures, Inc. (OTCBB:SWVI, SWVI message board) registered a couple of really exciting sessions over the last two days. On Wednesday, the ticker was brought back to life when more than 2.6 million shares changed hands pushing the price up by 118%. Impressive performance, you would agree, but it's nothing compared to yesterday when trading was really intense. Nearly 12 million shares were traded racking up a dollar volume of around $492 thousand. The price gain is an absolutely astonishing 277% and SWVI currently sits at $0.066 per share. This means that more and more people's attention is drawn to the chart and more and more traders are wondering if you should trust the company.

Of course, every single investor should decide for himself/herself, but in case you are one of the people contemplating putting your hard-earned cash in SWVI, you might want to consider a few factors.

The first one is the chart. You can see that back in February and March, there was quite a lot of excitement going on around the company. Trading volumes back then were much bigger than the ones you're seeing today and the price was also quite a bit higher. In fact, SWVI even managed to touch the $1 per share mark for a brief moment on February 20. By contrast, on Monday, four days ago, it hit its all time low of $0.0075. If you aren't one of the people following SWVI closely, you might be wondering what has caused the massive drop over the previous seven months.

It was, of course, the massive pump job carried out by none other than the infamous Awesome Penny Stocks (APS). The first emails came rushing into our inbox at the end of January and within a month, they pushed the price up to the aforementioned heights. There were the violent corrections often associated with promotional campaigns but when the alerts stopped in March, the ticker got absolutely smashed to the ground. Huge gaping holes were created in the pockets of investors who got a bit carried away with the artificial hype and right now, the pump-induced values seem like nothing but a dream.

Still, you might argue, the pumpers are now gone (APS are currently busy touting Pacific Clean Water Technologies, Inc. f/k/a Unseen Solar, Inc. (OTCMKTS:PCWT)), so we might just see what SWVI are capable of. Unfortunately, we're not sure that success is just around the corner.

When the promotion was still on, everyone, including the pumpers, were talking about the Algarobbo copper mine located near Santiago, Chile. Currently, SWVI have no rights or interests in the aforementioned property because they lost them back in June due to their inability to pay the taxes required. This, on the one hand, shows that you should never trust the paid pumpers, but more profoundly, it gives an idea of SWVI's current situation - they don't have a mine to work on.

SWVI_logo.pngOn Wednesday, the company CEO, Mr. Carlos De la Torre, came up with an announcement in which he explained that a new CFO has been appointed and he also says that they are negotiating the purchase of a silver mine in Mexico, but (surprise, surprise) he also says that they currently don't have the money to pay for the acquisition.

They might just be able to raise some cash through equity or debt financing, but even if they do, you still have to ask yourself: "Is the risk really worth it?". The ticker has turned into one of the worst promotional disasters of the year, the latest financial information is more than six months old (and it looks depressing) and now they are trying to woo investors in while working from what appears to be a virtual office. Make sure you do a lot of due diligence before deciding on your next move.

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