According to the recently announced Heli Electronics Corp. (OTC:HELI) financials, the stock may pretend to be a preferred investment.
Unfortunately, HELI stock is again in the middle of a stock promotional campaign, which appears its only chance to rush up.
On Friday, HELI filed its 2010 second quarter financial results. On the same day, the company’s shares closed the week at $0.04 on a modest volume of less than 200K.
On Monday, in compliance with the disclosed information about the stock promotion, HELI jumped 64.75% up. Twenty eight times higher than the average volume traded confirmed the stock stir.
Following the stock promotional inertia, yesterday the next share price jump was observed. Over three trading sessions, HELI surged 138%.
These days, it were not only the stock alerts that made investors demand HELI stock. Even the speculators showed great interest and during yesterday’s trading session 55.62% of the total volume was made up by shorters.
The stock stir was admirable, but investors still have to be warned that a stock promotion, combined with speculative market interventions, is usually followed by a sharp and fast price decline.
Though, due diligence on HELI brings positive emotions. As according to the latest report, the most important financial parameters of the company have made huge jumps up as well, it seems that HELI stock deserves investor attention.[BANNER]
On the background of HELI’s reported total shareholders’ equity of $5.81 million, representing an increase of 152.6% since the end of 2009, the company’s CEO also provides for credibility and confidence in the company’s prospects. At the beginning of this May, Mr. Qiu, Xin, President, Chief Executive Officer and Director of the company, lent around $2.9 million to HELI. The loan is non-interest bearing and has no maturity date.
This loan is one of the figures, that improved the company’s cash balance.
