America West Resources, Inc. (OTC:AWSR) finished yesterday’s session more than three times higher than its previous close. Was it the result of some sensational development? – No, it was an obvious pump.
It’s doubtful anyone who bought in yesterday didn’t realize it was a pump, but that didn’t get in the way of AWSR closing up 344.83% at $1.29 on a massive volume of 7.8 million shares.
Supposedly, there was an email by Awesome Penny Stocks which “accidentally” revealed their next pick.[BANNER]
Anyone who did any kind of research on the company would have noticed AWSR is hardly worth $83 million, which could be the market cap at $1.29 if the OS is still 64.6 million shares.
The company reports revenue, but is still unable to generate income, or even break even; the bottom line for the quarter ended September 30, 2011 was a net loss of $6.1 million. The balance sheets showed about $120 thousand in cash and working capital deficit in excess of $21 million.
It’s clear that the current price has very little to do with the value of the company itself. What isn’t clear is how long the hype will last, and everyone knows what will happen when it’s gone. The OTC Markets reacted relatively quickly and gave AWSR the Buyer Beware sign.
