Clavis Technologies International Co., Ltd. (OTC:CTLH) could be the next barely traded stock to gain popularity due to the newsletter of a paid stock promoter. And that could happen today, if we consider the promotional e-mail mentioning CTLH that we received yesterday evening.
Yesterday, CTLH traded 5,000 shares, a number equal to the average per day for the past several session, closing the market at $0.33 for a share with a modest 3.13% increase from the previous day. Today, the session might be a completely different one as at least one stock promoter has recommended CTLH as the new “power play” on the penny stock market.
Promoter Penny Stock Picks claimed in his newsletter yesterday evening that CTLH stock is set to “move nicely” and “should convert well for those investors getting in early”. The important part of the promoter’s disclaimer is that he expects to receive $20,000 in compensation from a third party. To the extend that Penny Stock Picks sounds so sure about CTLH potential gains today, we could assume that more mails are to follow and that it is a group of promoters advertising the stock.
Clavis Technologies provides software applications based on a proprietary RFID technology, though without much of success recently. The latest 10-Q shows assets for $88,000, the largest part of these consisting of capitalized costs on contracts. On the other hand, the company has managed to pile up some debts – current liabilities exceeded $1.3 million at the end of March 2011, and to make a net loss of nearly $70,000 in the the first quarter of the year.
CTLH latest press release came out at the end of June, and it was actually the reason for the stock to gain some trading interest. Last Tuesday the company said that it has been selected to realize the RFID-enabled asset tracking system for the computers of 122 South Korean manufacturers in Gaeseong Industrial Complex in North Korea. The deal has not been confirmed by an 8-K filing to the SEC, while the expected financial benefits for CTLH remain also a secret.
