Borislav Tonev

Service Team Inc (OTCMKTS:SVTE) Stays on the Radar

by Borislav Tonev March 1, 2016

Service Team Inc (OTCMKTS:SVTE, SVTE message board) first popped up on investors' screens about three weeks ago when it woke up and surged out of sub-penny land on significant volume. The breakout was followed by a consolidation, but the activity during the last two sessions suggests that it might be in for another climb.

On Friday, the ticker gained about 16% and after another 25% jump yesterday, it reached the psychological $0.01 mark once again. At $80 thousand, the volume wasn't too bad, either, and it showed pretty definitively that despite the past controversies (outlined in our previous article), people are ready to trust their money with SVTE. Why?

Is it because investors have suddenly realized that SVTE is one of the few OTC companies that can actually brag about a significant increase in revenues and a positive bottom line? Or is there something else at play?

We'll probably never know the answer. What we can tell you is that the usual catalysts for a sudden surge in activity simply aren't there. Nevertheless, if your money is on the line, you're probably not that interested in catalysts. You most likely want to know if SVTE can stay where it is for longer.

Most of you have seen that by Pennyland standards, the figures are not really that bad, and most of you probably know that a decent press release could give the ticker a properly strong push in the right direction.

What some of you might not have realized is that according to the latest 10-Q, there was about $180 thousand worth of notes convertible at discounts ranging from 45% to 50% at the end of November. Few have also seen that according to Nevada's Secretary of State, the number of authorized shares was raised from 75 million all the way to 500 million a couple of weeks ago. All this despite the fact that the last reported O/S count sits at just 13 million.

Whether this all points to a potential wave of massive dilution is for time to tell. Make sure you don't get carried away, though.

About ten minutes after today's opening bell, SVTE is traded at $0.009 per share.

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