{"id":5128,"date":"2014-11-08T14:13:11","date_gmt":"2014-11-08T14:13:11","guid":{"rendered":"\/?p=5128"},"modified":"2014-11-08T14:13:14","modified_gmt":"2014-11-08T14:13:14","slug":"accelpath-inc-otcmktsaclp-skyrockets-on-acquisition-news","status":"publish","type":"post","link":"\/articles\/accelpath-inc-otcmktsaclp-skyrockets-on-acquisition-news\/","title":{"rendered":"AccelPath Inc (OTCMKTS:ACLP) Skyrockets on Acquisition News"},"content":{"rendered":"\n<p><img loading=\"lazy\" decoding=\"async\" style=\"float: right;\" src=\"\/\/s.hotstocked.com\/hotstocked.com\/repository\/articles\/88\/88485\/aclp.png\" border=\"0\" width=\"400\" height=\"178\" \/>A little over a year ago, AccelPath Inc (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ACLP\">ACLP<\/a>) announced their intentions to acquire a company called Energy Innovative Products. The management team said back then that they&#8217;re extremely excited about the transaction because it will give them the opportunity to diversify their business plan. Unfortunately, while the acquisition did result in a bit more interest from investors, it did little to stabilize <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ACLP\">ACLP<\/a><\/strong>&#8216;s financial situation.<\/p>\n<p>The latest 10-K is here to prove the point. Here&#8217;s what the company recorded during the twelve months ended June 30: <\/p>\n<ul>\n<li>cash: $26 thousand<\/li>\n<li>current assets: $28 thousand<\/li>\n<li>current liabilities: $2.7 million<\/li>\n<li>yearly revenues: $216 thousand<\/li>\n<li>yearly net loss: $2.5 million<\/li>\n<\/ul>\n<p>Once you take a closer look at the 10-K, you&#8217;ll see that the revenues (which, by the way, have experienced a <strong>35% drop year over year<\/strong>) are coming from government contracts that have nothing to do with Energy Innovative Products. All in all, the acquisition from October 2013 was probably not the best move for <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ACLP\">ACLP<\/a><\/strong> and, not surprisingly, a few weeks ago, the two entities decided to unwind the agreement.<\/p>\n<p>Immediately after that, however, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ACLP\">ACLP<\/a><\/strong> found another acquisition candidate. It&#8217;s called Village Tea Company Distribution and about forty minutes before yesterday&#8217;s opening bell, a press release informed us that the transaction has been completed. The question on everyone&#8217;s mind is: &ldquo;<em>Will the new daughter company be more successful than the old one?<\/em>&rdquo;.<\/p>\n<p>Judging by <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ACLP\">ACLP<\/a><\/strong>&#8216;s truly explosive performance yesterday, there&#8217;s no shortage of people who reckon that the answer is a definitive &ldquo;yes&rdquo;. The ticker managed to gain a whopping 128% in a matter of just six and a half hours and it finished the day at $0.0016 per share on a dollar volume of around $300 thousand.<\/p>\n<p>Truth be told, there are some things to suggest that Village Tea is a solid company. There are a few videos around the internet about the premium tea seller and its CEO, Martin Ekechukwu, and having gone through them, we can certainly see that there is a market for their products. Investors certainly have the right to be excited, but aren&#8217;t they overlooking something?<\/p>\n<p>Evaluating the risks of a potential investment is something strictly individual. When you see a dilution as astronomical as the one shown by <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ACLP\">ACLP<\/a><\/strong>, however, you must pay close attention. Let&#8217;s go through the SEC filings and see what has happened to the O\/S count over the last few months or so.<\/p>\n<p>The 10-Q covering the first calendar quarter of 2014 shows that <strong>on May 2<\/strong>, there were around <strong>1.3 billion shares issued and outstanding<\/strong>. <strong>On July 9<\/strong>, this number was already sitting at <strong>4.7 billion<\/strong>. At that point, a reverse split seemed inevitable and on <strong>September 4<\/strong>, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=ACLP\">ACLP<\/a><\/strong> reduced the O\/S count by a factor of 250.<\/p>\n<p><strong>Immediately after the split<\/strong>, there were about <strong>19 million<\/strong> shares issued and outstanding, but unfortunately, the printing press wasn&#8217;t about to be given a rest. The latest financial report got published <strong>on September 29<\/strong> and it showed us that back then, the O\/S count stood at a little <strong>over 22 million<\/strong>. How much is it now?<\/p>\n<p>We can&#8217;t know for sure. Chances are, however, that it&#8217;s much more than 22 million because during yesterday&#8217;s session alone, investors traded <strong>more than 207 million shares<\/strong>. As you probably know, it&#8217;s not impossible for the daily volume to exceed the float. Doing it by <strong>a factor of ten<\/strong>, however, is bordering on the absurd. That&#8217;s why, carefully evaluating the risks is absolutely essential.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A little over a year ago, AccelPath Inc (OTCMKTS:ACLP) announced their intentions to acquire a company called Energy Innovative Products. The management team said back then that they&#8217;re extremely excited about the transaction because&#46;&#46;&#46;<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1522],"class_list":["post-5128","post","type-post","status-publish","format-standard","hentry","category-news","tag-aclp"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/5128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=5128"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/5128\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=5128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=5128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=5128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}