Stocklemon Initiates Coverage on Advanced Technology Industries (OTCBB:AVDI)
May 02, 2002
Stocklemon Initiates Coverage on Advanced Technology Industries (OTCBB:AVDI)
Advanced Technologies Industries (OTC: AVDI) Is Neither Advanced nor is it Technological. Is it Nothing But a Good Ole’ “Lemon”.
The Numbers
Shares Outstanding - 46.27 million
Market Capitalization - $ 88 million
Years as a public company - 4
Revenues Since Inception- $ 0 (no that is not a misprint)
Accumulated Deficit- $14.6 million
Cash In Bank- $53k
Working Capital Deficiency- $4.3 million
freeedgar.com
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During the past two months, the stock price of Advanced Technologies has increased from $.30 to over $1.90.....but why? Stocklemon believes that this is nothing more than a classic pump and dump that we have seen just too many times. Stocklemon puts an immediate sell on this stock and believes it will trade back to its pre pump level of 25 cents.
Advanced Technology Industries was incorporated in 1995 with the intention of identifying, assessing, and acquiring innovative technologies throughout the world focusing on the countries of Israel, Russia, Germany, and the United States
Many Businesses.....No Revenue
According to the last filing by the company they are engaged in the following businesses:
1. Revamping Nuclear Industry in Russia
2. Silicon Carbide Technologies
3. Reseal able Beverage Containers
4. Nuclear Waste Storage
5. Polymar Heating Element
What do all of these businesses have in common......NONE OF THEM HAVE EVER PRODUCED ONE CENT IN REVENUE.
Resealable Can
The company is now putting the spin that the resealable can is the answer to all of their problems. Unfortunately, they are under funded and ill equipped to compete in the container business. They even claim in their filings,
"Competition in all of the areas in which we own and propose to purchase technologies is intense. We compete against a wide range of companies, universities, think tanks, consumer product companies and others, most which possess substantially greater financial and marketing resources and experience than us. Competition in our core business segments is typically based on product recognition and acceptance, price, and sales and marketing expertise and resources. Any one or more of our competitors or other enterprises not presently identified by or known to us may develop technologies and/or products which are superior to ours, less expensive than our products and technologies or market more successfully existing or new competing products and technologies. To date, we have not generated any revenues from our products or technologies and are competing against companies that may have significantly greater financial and human resources."
How can you compete in the beverage container business with only $55k in the bank? Unless of course they want to spend their money on a terrific beer can collection.
Corporate Offices
According to the company's most recent 10KSB filing, the company's executive offices are a "800 square foot executive space" in Berlin Germany. Can You BELIEVE A $90 Million Company in an Executive Suite?.....but wait it gets better......they share this space with the great company that makes the resealable beverage containers. Both of them in 800 square feet. We take our last comment back....you can not even out a nice beer can collection in their offices
Check out this deal…Great job Guys
"During 2001, we acquired a 29.27% interest in Nurescell Inc., a Nevada corporation. On January 11, 2001 we acquired a total of 3,500,000 shares of Nurescell Common Stock from trusts controlled by Adrian and Diana Joseph in exchange for the issuance of 3,500,000 shares of our Common Stock "
Current Stock Price of Advanced Technologies - $1.90
Current Stock Price of Nurescell - $.02 (two cents)
As of December 31, 2001, Advanced Technologies owned 4,590,000 shares of Nurescell Inc. common stock, representing 29.27% of their outstanding and issued shares.
Ponzi Scheme
It seems as if Advanced Technologies raises money for the sake of paying back the the entity from whom they just borrowed money. Furthermore, the company can not even borrow money at decent terms. Throughout 2001, whenever they borrowed one dollar, they gave up one dollar in stock in addition to the loan. One year ago this week Advanced Technologies had to raise money. Below are the terms in which the money was raised. In our opinion, it is enough to make any shareholder cringe.
"On April 30, 2001, the Company, in order to provide working capital, issued a promissory note for $240,000, with a maturity date of three months. Interest is payable at the rate of 1% per month. The Company has the option to pay the interest in cash or restricted stock. If the option exercised by the Company to pay the interest in stock, the number of shares to be delivered to the lender will be determined by multiplying (i) the average closing bid price of the stock for the five trading days prior to the maturity date by (ii) 85% and dividing the interest due by the resulting multiple. In addition, the lender received 410,000 shares of the Company's common stock as an incentive to make this loan. In addition, the Company granted the lender piggyback registration rights for the shares for a period of five years from the date of the loan. The Company utilized $220,000 of the funds from this loan to repay a portion of the note offering which came due on April 1, 2001."
This deal seems to be typical of the way Advanced Technologies has done business...it is a cycle: Borrow money, then pay an enormous incentive to get the loan, then convert the loan into equity at a discount to the market. In our opinion, this is a true recipe for disaster.
Who Is The Largest Shareholder
The largest shareholder of the company is a gentleman named Kurt Seifman. He also is the sole shareholder of ERBC Holdings Limited. It would be difficult to tell if Mr. Seifman is selling his stock right now because ERBC is a British Virgin Island Corporation with office addresses in Turks and Caicos and the British West Indies. Interestingly enough, even though Mr. Seifman owns far and above more stock than anyone else, close to 45 % of the company, he is not a director. His name can be found no where in the filing except under shareholders. As we read the filings, it became apparent that Mr. Seifman owns most of his stock in the ten cent range and has been a major source of funding for the company. Stocklemon could not find enough information about Kurt Seifman to make a definitive conclusion, yet, through our experience....OFFSHORE ACCOUNTS EQUAL STOCK DUMPING.
lawanytime.com
IntellectualPropertyLicenseAgreements/Games
/SUM00763.html
S8 Registration
In December of 2001 Advanced Technology issued 6 million shares of S8 stock at a price of .23 cents. Who are these consultants? What did they do for this stock? We have seen this before and we all know S8 registrations end.
freeedgar.com.
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Conclusion
“Just because you’re not paranoid doesn’t mean they’re not after you” Similarly in this case, “Just because we cant find the fraud, doesn’t mean there is not one being committed.” Stocklemon believes that the recent price movement in the Advanced Technical is neither advanced nor is it technical…it is a simple pump and dump.
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