Borislav Tonev

Airware Labs Corp (OTCMKTS:AIRW) Wakes Up all of a Sudden

by Borislav Tonev April 1, 2016

Airware Labs Corp (OTCMKTS:AIRW, AIRW message board) hasn't issued any press releases over the last seven months and that, in the world of penny stocks, is eternity. The message boards dedicated to the ticker seem to be deserted and the stock isn't actively discussed around the social media. Basically, if you're looking to find out what investors think of AIRW, you'll be left with the impression that nobody is really interested in the stock. And that's easily explainable with the eerie PR silence.

Yet, if you take a look at what happened yesterday, you'll see that investors are interested in AIRW. In fact, in a matter of six and a half hours, they poured nearly $310 thousand into the stock and they pushed it on a 25% climb which resulted in a close of $0.21 per share.

The more experienced among you have probably realized already that the lack of an immediately obvious catalyst for the sudden an unexpected climb means that the reversal could be just as abrupt. All in all, the risks are pretty high. And that's even without taking a look at the latest 10-Q.

AIRW filed it a few days ago. It covers the last three months of 2015 and it looks like this:

  • cash: $27 thousand
  • current assets: $63 thousand
  • current liabilities: $1.9 million
  • quarterly revenues: $105 thousand
  • quarterly net loss: $396 thousand

There has indeed been a 12% jump in revenues on a year-over-year basis, but despite this, the 10-Q is not exactly drool-inducing.

To top it all off, if you take a closer look at the report, you'll see that quite a few shares have seen the light of day at $0.05 apiece as a conversion of unpaid interest. They came with a restricted legend and were acquired by “related parties”, but you should still bear them in mind before putting any money on the line.

Basically, if you're looking at AIRW as a quick trading opportunity, you should be careful in timing your entry and exit points. And if you want a long term investment, you should be equally careful in assessing all the potential risks and pitfalls.

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