AISYSTEMS, Inc. (OTC:ASYI) Longing for a Major Breakout on Old Plans and New Promotions

AISYSTEMS, Inc. (OTC:ASYI) still lacks the $5 to $10 million to keep its business running, though the stock has been stabilized since last November and the share price remains stuck in a narrow trading channel. Yet, to traders attention: new promotional e-mails have been launched late in the evening yesterday, advertising ASYI stock as a ticking bomb that can explode any time.

The last trading session was an usual one for ASYI for this month. The stock closed about the middle of its typical trading range at $0.18 for a share, with a 5.88% increase from the previous day. Trading volume was weak when compared to the average for the last two weeks, amounting only about 112,000 traded shares. Some technical parameters look bullish, like slightly starting to expand Bollinger bands, an MACD lines reversal and cross, and RSI also pointing up.

A successful promotion serving as catalyst for an immense breakout might be thus witnessed today, for which speaks also the $35,000 compensation that the group of promoters received from the paying third party. On the other hand, the promoters seem to have nothing new to say to traders, which could in the end prevent the massive breakout.

The old information contained in the promo newsletter seems also like the most apparent reason for the recent heavy volumes for AISYSTEMS stock. About two weeks ago, the company announced its plans to launch its “revolutionary Intelligent Competitive Market Data (“ICMD”) products”. Though, it would be naive to expect that ASYI will right away fill the software technology gaps in the airline industry, as the company looks more like striving for its survival.

For the five years of developing the proprietary business platform called jetEngine^TM, the attempts to come up with a major contract have not been successful. The contract with AeroMexico from 2007 has not brought anything by now. Last September AISYSTEMS entered into an agreement with Turkish Airlines Teknik for the evaluation and potential purchase of the jetEngine^TM Business Planning Suite. The evaluation was supposed to take 60 days, and if positive a license agreement was supposed to be signed. Since then, no agreement has been announced.

Also, the $5 to $10 million equity financing planned already last year did not take place last year, while AISYSTEMS run out cash already in the thee months ended September 2010. All facts, making the launch and the marketing of the “revolutionary” new product hardly possible. Moreover, ASYI unbearable debts and working capital deficit put the company’s further existence strongly under question.