The stock of Auri, Inc. (OTC:AURI), formerly Wellstone Filter Sciences, Inc. (OTC:WFSN), has gained immense value in the last few months after the company entered new business perspectives. Today, it looks like it could gain sharply even more as yesterday promotional e-mails reached traders’ mail boxes.
AURI closed the last trading session without a change in the price at $0.51 and the trading volume exceeded 123,800 shares. The promotional e-mails for AURI from yesterday evening point AURI as a possible breakout. A third party has paid $13,000 for the one-time featuring of AURI stock in the promoter’s newsletter.
Technically, the stock does not look ready for an immediate jump up as it trades around the middle of its price range. But stock promotions have already proven able to change such a situation for other similar stocks and make a share price explode. Moreover, AURI got also promoted in the beginning of the month as it was still traded under its old symbol. At that time the stock surged to a new 52-week high. This time, there is news as well that could add more weight to the promotion. Yesterday, AURI said that it will enhance its branding platform.
Auri, Inc. got its current business through a reverse merger in February this year. According to the latest 10-K report, the company does not have any manufacturing facilities and employs only one person on a full-time basis. Production is completely outsourced to manufacturers in China, with which however AURI does not have long-term contracts.
That imposes additional risks to the risk that AURI footwear might never penetrate the market given the severe competition. The company’s balance sheet also suggests that now it probably needs cash urgently. At the end of December 2010 AURI had around $400,000 in cash, which would not be enough to keep the business running.
