I wanted to update our membership on our opinion of Apptigo International (OTCQB: APPG).  We now consider the shares of APPG to be an outstanding and rare shorting opportunity. 

Starting about August 4, 2014 volume for APPG began to spike. At first it looked like people were “buying in” to APPG and pushing it upward. What we see now is that the stocks’ high in the $1.80 range seemed to be a sweet spot for selling to commence. From what we see there are a lot of shares that have come to market and have pushed the share price down. Just when it appears to slow somewhat, there are more shares hitting the bid. 

Shares are already down as much as 86% if you go from the high last month of $1.89 and compared it to the low of just $0.25. 

With all of this going on you would hope that all potential free trading shares have already come to market. A look at the last two quarterly filings and you see there are a lot that COULD be coming before long: 

From 10-Q for period ending March 31, 2014: 

“Subsequent to the closing, the Company sold 350,000 post-forward split shares for $50,000.”

Math: That’s $0.1428 per share.

If that was a one time thing, not a problem. If it is a trend, big problem. 

From 10-Q for period ending June 30, 2014:

“During the six months ended June 30, 2014, the Company sold 21,775,000 shares of common stock pursuant to stock purchase agreements in the amount of $450,000.”

Math: That’s $0.0207 per share.

That means shares will be registered (potentially) within a few months that could come to market. What was the date of that transaction? We cannot clearly see the date. Let’s assume worst case scenario. Let’s assume they did this deal on May 1, 2014.  That would mean these shares could potentially come to market by November of THIS YEAR.   Even if that transaction was done late in June, those 21,775,000 shares purchased for just $0.0207 could come to market THIS YEAR.

They APPEAR to Want More Money – and are at an Investment Banking Conference THIS WEEK!

Look at their August 25th Press Release:

Apptigo International to Present at the National Investment Banking Association’s 132nd Investment Conference

“…to present at the National Investment Banking Association’s (“NIBA”) 132nd Investment Conference to be held in New York City on September 15-17, 2014.”

Let’s say your an investment banker and you know that there are over 21 million shares coming up for potential registration that were purchased for $0.0207 per share. What kind of terms are you going to give APPG?

Nobody knows when these shares are going to come to market. Let’s say NONE come to market. That does not erase the truth that these shares exist and will have a downward affect on the share price. 

How I see APPG:

I see this stock trading in the single digits before this year ends. Am I right? Only time will tell.