Omni Ventures Inc (PINK:OMVE) has been advancing up over the past weeks. The stock closed the week by adding 16% to its market price on an increasing trading volume. The question is what is based the up move on? Following the records, it definitely must be the positive press releases by the company.
During the past weeks, Omni Ventures has been regularly releasing optimistic announcements on its business, which ensured its stock position. Last Thursday, the company reported that its wholly owned subsidiary, PRVCY Couture, Inc., was resuming production of denim products for seasons of 2011 and 2012. It was anticipated that the products will be sold to domestic and international distributors and it might translate the initial sales of over $1 million dollars at the prevailing wholesale prices.
Apparently, the optimistic statements have encouraged traders and pumped OMVE stock price immediately, though the projected numbers are still future projections. In any case, Omni Ventures is not giving up and today it published another good news claiming that the company was expanding its PRVCY premium product, pursuant to an exclusive licensing agreement with Andari Fashion Inc.
Despite being in the preliminary negotiation stages yet, the additional licensing transactions with domestic apparel and accessories manufacturers are meant to attract investors’ attention. Looks like the PR strategy of OMVE is currently working and eventually it might be strong enough to push up the stock price even higher.
Omni Ventures, Inc. is a development stage company working on a versatile portfolio of projects in commercial real estate, premium consumer brands merchandising as well as consumer services. This month, the company filed its quarterly results, which however, don’t look much promising.[BANNER]
As of March 31, 2010 the assets of Omni Ventures were higher than its liabilities, though the company had a significant accumulated deficit as well as a net loss that hadn’t been covered. Moreover, being in the development stage, OMVE had not yet generated any substantial revenues and its existence was placed under a going concern.
Considering all these factors, it turns out that presently Omni Ventures is highly dependent upon the financials of its wholly owned subsidiary PRVCY. However, at this point its profit remains just a future projection.
