If you asked a penny stock trader what he thought of American Video Telec (PINK:AVOT) two days ago, he would probably have had no idea what had happened with AVOT stock since May 2 when it was last traded.
Indeed, AVOT had disappeared into the blue for more than four weeks when the twelve-month advertising campaign was launched last Saturday, reminding about the metal mining company. While the advertising campaign has a long way to go before coming to an end, the promoter has already disclosed a compensation of 4 million free trading shares for a six-month coverage, two million shares of Rule 144 common stock for twelve months of IR services, as well as 1 million shares of restricted common stock under Rule 144.
The investor awareness program mentioned above is expected to give AVOT stock a breath of fresh air following a continual period of dead silence. However, considering that the company is interested in exploring for precious metals and rare earths, any update on that matter will undoubtedly have a much bigger impact on AVOT stock.
Although American Video Telec is doing its best to provide stockholders with relevant financial information, it can hardly lure them into pooling their money into AVOT shares. Indeed, the company recently published a brand-new quarterly report covering the period ended Mar. 31, 2011. What it contained, however, was far from spectacular, namely:
- zero assets and $500 in liabilities;
- zero revenues and a net loss of $50 thousand.
The $50K long-term debt has now been transformed into a net loss. Unless something extraordinary occurs, AVOT will hardly become more attractive to investors no matter how many promotions come up in support of its corporate stock.
