Borislav Tonev

Agora Holdings Inc (OTCMKTS:AGHI) is Sinking

by Borislav Tonev March 30, 2016

Plenty of people have been on a mission to persuade you that putting your money in Agora Holdings Inc (OTCMKTS:AGHI, AGHI message board) is a good call. The Profit Letter, for example, put together a landing page a few months ago and said that the stock can potentially give you 1,400% in profits. The landing page in question has been taken down, but it's been replaced by a barrage of email alerts, the most recent of which landed in investors' inboxes before the start of yesterday's session. But why are those people so insistent on telling you how good an investment AGHI is?

Because they've been paid to advertise the stock. The aforementioned landing page said that the total budget sits at a whopping $500 thousand and if the fine print under the emails is anything to go by, the newsletters have also received a piece of that pie.

Because the promoters have been paid to advertise the stock rather than present AGHI for what it is, they failed to include a few important facts in their reports and emails. They never said, for example, that at the end of September, AGHI had absolutely no cash, less than $5 thousand in current assets, a working capital deficit of over $240 thousand, and a quarterly net loss of nearly $120 thousand.

They also said nothing about the 50 million common shares that saw the light of day as a conversion of preferred stock about a year and a half ago, and they kept quiet about the $138 thousand worth of debt convertible at a fixed price of $0.002 per share. We, on the other hand, talked about all those things and we tried to warn our readers that they can wreak havoc with AGHI's performance.

Sure enough, the ticker has been anything but stable, especially since the landing page went down. The pumping did manage to elevate AGHI to some serious heights. The ticker even tried to emerge above the $0.40 per share mark on a couple of occasions. Staying at these levels for long proved to be too difficult and after the last peak at the beginning of the month, the stock has slowly but surely been sliding towards the bottom.

Yesterday, AGHI logged its fourth consecutive red session and after losing more than 17%, it stopped at $0.215 per share. There are probably people who failed to read through the fine print and consider all the risks. Hopefully, they'll know what to do the next time they see a colorful landing page full of diagrams and profit projections.

About five minutes into today's session, AGHI is traded at $0.225 (4.5% in the green).

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