After a rather consistent spree of significant drops Oteegee Innovations, Inc. (OTC:OTGI) made a somewhat surprising recovery on Friday, gaining 17.86% and closing at $0.033, which is still a far cry from the price levels OTGI stock had reached at the beginning of the month. 1.88 million shares changed hands on Friday, which is slightly above the average.
It seems there is no logical explanation for this slight bounce back. OTGI did not announce anything new on Dec. 10 and the stock was mentioned in one newsletter alert on Thursday. It is highly doubtful the alert had anything to do with the gain, since the stock price did not react in any positive way to the previous press releases and promotions, on the contrary it was consistently falling despite the seemingly positive information released.
Oteegee Innovations Inc. is the 100% owner of Pay By The Day Company Inc. and also owns a small interest in Grail Semiconductor. OTGI signed an agreement to acquire 100% interest in the Abigail Lithium Project in November 2010. The objective of the company is to be a part of the growth and development of innovative companies through strategic acquisitions.
On Nov. 29 OTGI notified the SEC that it will be late filing their quarterly report. Looking at the previous 10-Q form filed in July 2010 reveals that the company was in a pretty shaky financial state. The cash they had on hand was $12 thousand – not nearly enough to cover the liabilities of $79 thousand. Additionally the deficit accumulated during the development stage amounts to $337 thousand, and OTGI operates at loss.
It is obvious the company will need to find some way to generate adequate financing if it is to continue as a going concern and it seems that positive PR is not enough to convince investors in the strength of the stock.