When AppTech Corp (PINK:APCX) announced last Thursday that its wholly-owned subsidiary Oronoco Telecom, LLC had started generating revenues, the news was met with enthusiasm by investors. The latter have been trading APCX with increasingly higher volumes in the last few days. The trade hit a peak yesterday, when APCX price shot up 75% to the value of $0.0007 per share, while the traded volume skyrocketed to the staggering 728.3 million. The surge was further fueled by a major, soon-to-be-announced corporate update.Compared with the record level of $0.0038 from mid-August 2010, the current increase can hardly be classified as significant. Yet, the revenue update mentioned above seems to confirm the high potential of the mobile applications market both in North and South America. [BANNER]
Seen from an options holder’s perspective, the rigorous activity aimed at pushing APCX stock high might have something to do with an upcoming options’ expiration date. However, since the volume traded yesterday was extraordinarily high, some iHub posters have already expressed their doubts if this upward trend will continue its course once market makers have relieved the buying pressure.
The company’s latest unaudited Q3 report covering the period ended Sept. 30, 2010 shows:
- $100+ thousand in cash, which marks a five-fold improvement over Q4 of 2009;
- a working capital surplus of $700K vs. a deficit of $5K for Q3 of 2009;
- a nine-month net loss of $300 thousand.
Provided that APCX manages to submit fully audited financials soon, its stock might become more attractive to investors as a higher OTC markets designation will be achieved. In addition, if Oronoco’s ventures in both South Africa and Europe turn profitable, then APCX stock will stand a really good chance of becoming the next ten-bagger on the market.
Whether the financial gap will be filled this year or not, however, is a good question, for the prospective financial success is dependent not only upon mere revenue, but also on the scale of all related expenses. Last but not least, the $200-million credit line secured by Oronoco in Hoduras poses further challenge to the company’s ability to pay off its debt and eventually go in the black.
