Avatar Ventures Corp. (OTC:AVVC) stock price hit the $1.10 resistance on a second consecutive day and this time even managed to close higher. The record demand was initiated by a few promotional e-mails, while the company has not yet advanced beyond the planning phase of its business.
As soon as the first promotional newsletters hit traders’ in-boxes yesterday, buying pressure for AVVC shares occurred on the market and the stock price surged again up to the resistance of $1,10, which is also AVVC 52-week high. The market closed then at $1.045 and the over 3.1 million share volume led to a share price jump up of 30.62%.
One promo e-mail states that AVVC could be the next “Break Away Stock”, without pointing out any particular reasons for that. The disclosure statements of two of the promoting websites say that they are owned by the same company, which receives compensation for the stock advertising services. The particular amount or art of that compensation has not been given. Another promoter has purchased 15,000 shares of AVVC on the open market which can be sold at any time.
That amount looks minor compared to yesterday’s volume, but it is huge when compared to AVVC average turnover for the past 30 days, which is 2,533 shares.
Avatar Ventures latest 10-Q report shows $16 of cash as the only asset and total liabilities of $24,505 as of end-January 2011. The company was created in 2006 and so far it still intends to be a developer of aftermarket electronic accessories for consumer motor vehicles.
Its first product in development is a cellular phone car adapter that enables cellular text messages and wireless emails to be displayed on a small LCD screen attached to the car’s dashboard area. Further, AVVC claims that it will complete a working, prototype by the end of July 2011. So, it is too early to look for the big news, but the stock stays on the promoting list for today’s session as well.
