Yesterday, a number of promoters pumped Amwest Imaging Inc. (OTC:AMWI). The result was a price increase in excess of 400% and a huge volume.
The price skyrocketed 486.67% to close at $0.176, and close to 72 million shares changed hands.
According to an 8-K filing by AMWI, the issued and outstanding shares as of Nov. 7 were 535.6 million. Yesterday’s closing price would then make AMWI’s market cap approximately $94 million.[BANNER]
What does the company do Up until Sept. 6 AMWI did pretty much nothing. As you can see on the chart, AMWI hasn’t been actively traded either. Then, the company announced it had acquired Instant Website Technology Inc. (IWTI)
Back in September, AMWI actually chose not to issue a press release, but rather just file an 8-K concerning the acquisition. The PR was issued yesterday, conveniently coinciding with the promotions.
Now IWTI is a wholly-owned subsidiary of AMWI and represents its business which is to help customers create and maintain websites. IWTI derives its revenue by charging a monthly fee.
The latest 10-Q filed by AMWI has some limited financial data on IWTI’s performance. An interim financial statement shows that as of June 30, 2011 IWTI had generated $489 thousand in revenues and $1.1 thousand in net income.
Traders had some time to do due diligence, and some of them probably did, while others skipped that step. FINRA’s daily short trade files show that more 50% of yesterday’s volume was generated through short selling. Today will show who made a better decision.
