Small cap stocks VizStar Inc (OTCMKTS: VIZS), SOHM Inc (OTCMKTS: SHMN) and American Soil Technologies, Inc (OTCMKTS: SOYL) have been getting some attention in various investment newsletters with two out of three of these stocks being the subject of paid promotions. However, there is nothing wrong with some paid for attention so long as everything is properly disclosed, but its going to be up to investors and traders alike to ultimately decide whether any of these stocks have what it takes to be the next hot stock. With that in mind, here is a quick reality check about all three small cap stocks:
VizStar Inc (OTCMKTS: VIZS) Is a Little Behind on Its Financials
Small cap VizStar is an aggregator of companies and products in the organic cosmetic, wellness and skincare space. Vizstar is focused on companies that are USDA Certified Organic possessing both patents and product distribution. On Friday, VizStar fell 20%, but there seems to be little trading data on both Yahoo! Finance and Google Finance.
What’s the Catch With VizStar Inc? According to various disclosures, transactions of $2k, $10k and $15k have or will occur to mention VizStar in various investment newsletters. Last Tuesday, VizStar announced that its Kimberly Parry Organics, which creates luxurious spa products that harness the power of botanicals and aromatherapy, has retained the Law Office of Brian A. Newman for the Company’s Corporate Counsel and Contract Review. Apparently, Mr. Newman has been awarded “Top 100 Trial Lawyers of 2013.” VizStar also recently issued a press release to report that Kimberly Parry Organics’ CEO appeared on MoneyTV with Donald Baillargeon to announce the company's forays into the Netherlands and Japan. However, a quick look for financials reveals the most recent financials posted on Yahoo! Finance date from 2010 – meaning its investor beware until the company gets them updated.
SOHM Inc (OTCMKTS: SHMN) Sort of Has Decent Financials
Small cap SOHM Inc offers a wide variety of products designed to promote a wide variety of healthcare and wellness solutions. Specifically, Sohm offers Generic and White Label drugs as well as several treatment categories designed by Sohm’s scientists plus the company two manufacturing facilities. On Friday, SOHM Inc fell 6.32% to $0.0089 for a market cap of $20,381 plus SHMN is up 27.1% over the past year and up 345% over the past five years according to Google Finance.
What’s the Catch With SOHM Inc? According to various disclosures, transactions of $1.5k and $15k have or will occur to mention SOHM Inc in various investment newsletters. Last Thursday, SOHM Inc announced it had launched a unique protein supplement I-Prolec™ in India. The press release says this supplement will help people who have protein deficiency as well as athlete and sports persons who have need of extra proteins. Otherwise and back in June, SOHM Inc announced the financial results for the fiscal first quarter where revenue came in at $1,005,410 verses revenue of $375,741 for the same quarter of 2012. Not mentioned in the press release was a net loss of $236k along with net losses of $259k, $213k and $267k for the past four reported quarters. At the end of March, SOHM Inc had $138k in cash to cover $1,697k in current liabilities and $2,956k in long-term debt. Those full financials are not exactly great, but they are also not exactly terrible if the income statement’s top line continues to grow and the company turns a profit.
American Soil Technologies, Inc. (OTCMKTS: SOYL) Has Been Very Quiet
Small cap American Soil Technologies engages in developing, marketing and selling polymer and other soil amendments to the agricultural turf and horticulture industries primarily in the United States. The company’s principal products include Agriblend, a soil amendment for agriculture; Soil Medic, a slow release liquid fertilizer for homes, parks, golf courses, and other turf related applications; and The Agro Tower for vertical farming. American Soil Technologies also provides homogenized fertilizers, non-toxic insect controls, plant protectants, seeds and soil and silage inoculants to commercial and residential customers worldwide. On Friday, American Soil Technologies fell 9.52% to $0.0770 for a market cap of $5.24 million plus SOYL is up 1,141.9% over the past year and up 28.3% over the past five years according to Google Finance.
What’s the Catch With American Soil Technologies? According to various disclosures, no transactions have occurred to mention American Soil Technologies in various investment newsletters and I am not seeing any news from the company on various financial newswires. A quick look at American Soil Technologies’ financials reveals revenues of $11k (most recently reported financials), $11k, $7k and $22k along with net losses of $148k (most recently reported financials), $15k, $168k and $158k. At the end of March, American Soil Technologies had $1k in cash to cover $7,600k in current liabilities. The first paragraph of American Soil Technologies’ quarterly financial filing had the following going concern provision:
The Company has sustained significant losses and has an accumulated deficit of $28,837,342 and negative working capital of $7,586,834 as of March 31, 2013. The ability of the Company to continue as a going concern is dependent upon obtaining additional capital and financing, and ultimately generating positive cash flows from operations. Management intends to seek additional capital either through debt or equity offerings.
So we might start hearing something from the company soon.