American Leisure Holdings (OTCQB:AMLH) is a name that I believe is currently the target of a penny stock promotion scheme. It is my view that the stock's intrinsic value is somewhere near $0, and it is with conviction that I recommend that any investors currently in the name sell the entirety of their stakes immediately. I believe that American Leisure Holdings is a stock definitely worth shorting. My track record of identifying and publicly exposing such highly overvalued equities is excellent.
Little Revenue, Debts, No Business. Bright Future?
As is usually the case with these types of hyped-up scams, it takes only one quick glance at the balance sheet to realize that the $74M market capitalization that this equity commands is beyond ludicrous. With $8,550 in total current assets and $22,529 in current liabilities in the recent quarter, it is clear they are not going in the right direction. I find it difficult to believe that the company can make any moves in the right direction. They really can't, and it's my suspicion that the purpose of this company is not to succeed but to sell stock. The recent volume is due to overly bullish promotional mailers.
Picture of AMLH chart
You can see that trading in American Leisure Holdings started seeing really big volume on January 20, 2015. I first received an email from Elite Group on January 20, 2015. The group has various websites that I will list in a little bit but what I found funny is different websites were disclosing different budgets. Some sites say they were compensated $20,000, $400,000, and others say $130,000. Coincidence with the time of email campaign and volume in American Leisure Holdings? Absolutely not.
You can see obviously someone is interested in increasing public awareness for American Leisure Holdings. Most likely whoever owns those 80 million free trading shares.
Why else would someone spend up to $100,000+ to increase public awareness? At these levels, those are worth tens of millions of dollars! It is worth it to them because if they can bring in buyers and liquidate their shares around these prices that can mean millions in profits! Running pump and dump schemes is a lucrative business and that is why we see it way too often. My job is to alert you.
Elite Penny Group Linked Websites
Elite Penny Group Promotion History
Disclosed Budget: $20,000
Promotion High: $.64
Market Capitalization at High: $33,571,663
Percent Drop: 73%
Disclosed Budget: $18,000
Shares Outstanding: 300,000,000
Promotion High: $.1158
Market Capitalization at High: $34,740,000
Percent Drop: 94%
If you own shares of this company, get out now. Do not hope that you can hang on to sell them to a greater fool. These shares are worthless. I have shown you that the reason for the promotional mailers indicates that the individuals behind this stock scam are trying desperately to unload their worthless shares onto the unsuspecting public and book a huge profit before the inevitable collapse. If you are a more sophisticated investor and can get a borrow on these shares, then I believe that shorting this name will be highly lucrative for you. I believe the huge unusual action in American Leisure Holdings Inc. makes it at risk of a SEC halt. This will end up just like all their last picks - near 0. If you were burned on this one, I recommend learning from it.
Disclosure: The author is short AMLH.
The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.
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