12 Retech Corp - OTC markets formerly Devago, Inc. (DVGG)
RETC – This lovely stock came across my screener a few days ago and was put on my watch list...I noticed this climactic move from $1.00 to $2.50 ish 150% increase with a market value of 195 million in less then 1 month, lets take a closer look.
RED FLAGS
First off I noticed that the link to there website doesn’t work and it’s a Nevada company which makes this suspect already….
“We have not generated revenues and have limited cash on hand. We have sustained losses since inception and have relied upon loans from our sole director and officer and the sale of our securities for funding”.
“We expect that Apple and Android online App stores will be the primary distribution, marketing, promotion and payment platform for our mobile Apps”
We have only recently begun operations, have no sales or revenues, and therefore rely upon the sale of our securities or debt financing to fund our operations. We have a going concern uncertainty as of the date of our most recent financial statements.
Currently have 1 employee who is the officer and director
“Mr. Jose, supplies this office space on a rent-free basis. We do not expect this arrangement to be changed during the next 12 months”. This is weird!
“Our auditors have issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months.” This is always good to here!!
“As a “smaller reporting company”, we are not required to provide the information required by this Item.” Many times a small garbage company can hide behind this
the company has suffered recurring loses as described by the audit
in conclusion the company has no revenue, little to no cash, debt, issuing stock to raise cash to pay for everything and I wouldn’t be surprised if they hired a consultant to pump the stock up…this is a stock that is an empty carcass with a bad business model….
Disclosure: I do not have a short position as of this writing, however I may initiate one.