COASTAL INTGRTD SVCS (OTCMKTS:COLV) registered strong gains last week and even the positive momentum continued on Monday’s trading session. It was then on Tuesday’s trading session, when the stock showed first signs of weakness and declined almost 30% to close at $0.095.
The stock opened high at $0.137 and then gradually started its decline only to close deep in red. Even the pump email from StockTips released on Tuesday morning failed to stop the steep decline in COLV stock. However, the stock recovered a part of its losses in yesterday’s trading session and gained more than 15% to close at $0.110.
The sharp decline recorded on Tuesday is the second steep decline since StockTips reported that COASTAL INTGRTD stock will be their new pick. The announcement was made on May 31, 2015. The paid pump has a budget of $4.5 million but despite that on the very first day of the promotional email COLV declined 28%.
In the promotional mail released on Tuesday the fictional co-editor Mr. Mike Statler said that COLV is expected to touch 30 cents a share by the end of this week. However, the target price appears to be at a much higher side considering the hesitation the stock witnessed on Tuesday’s trading session.
As per the latest financial report for the quarter ending March 31, 2015, the total assets including cash came at $794. The total current liabilities came at $256,000. COASTAL INTGRTD SVCS (OTCMKTS:COLV) didn’t generate any revenue in the quarter while it reported massive net loss of $19,000. It is surprising to see that a company which reported total assets of $794 few months ago now has a market cap of $33 million. In order to continue its business operations COLV will require considerable amount of capital which may force company to once again opt for convertible debt.