Do Not Buy Avra Inc., This Week's Most Promoted Penny Stock

Apr. 15, 2015 9:28 AM ETNewRegen, Inc. (NREG)5 Comments
Big Banks profile picture
Big Banks


  • Avra Inc. has generated $0 in revenue since the company's inception and has less than $150,000 in assets, but still has a market cap of approximately $34M.
  • President and CEO Stephen Shepherd is "very optimistic with Avra's diverse business model,". He owns over 50% of all outstanding shares, which are now over 500% above six month lows.
  • According to, AVRA is the most promoted penny stock over the last five days.
  • Red Flag Raised: Direction- Investors should stay away from this company and experienced traders should look to strategically short it.

Avra Inc. (OTCQB:AVRN) focuses on solutions in the digital currency markets offering payment solutions to businesses worldwide. Its solutions include AvraPay, a system for merchants to accept Bitcoin for payment; AvraATM for promoting usage and acceptance of digital currencies; AvraTourism that provides cryptocurrency payment processing solutions for merchants, such as hotels and casinos; and AvraNews, a news portal focusing on digital currency news.

If you looked at the company's latest 10-Q and happened to miss the financial statements, you could be left with the impression that Avra isn't that bad of an investment. Avra Inc. used to market and sell SmartTV set-top boxes; recently, they've stated that they want to partially continue this business in addition to providing various services to businesses that use Bitcoins.

The business sounds somewhat intriguing but, while you have the 10-Q open, you should look at the company's financial performance. Disclosed is the following:

  • Revenue: $0 (since inception in 2012)
  • Assets: <$150,000 (100% Cash)
  • Liabilities: $91,000

The company states that its business now revolves around their suite of payment solutions, such as AvraPay and AvraATM. It is unclear whether or not the company actually has any developments to date. The only asset recorded on the balance sheet is cash, so I'd like to know what exactly they plan on selling.

With a market capitalization of around $25M, Avra Inc. is significantly overvalued. My goal here is to outline why you should stay away from or sell this stock if you happen to own it. For novice investors who still haven't realized how penny stocks truly work, an image of their company headquarters might make things a little bit more clear. According the Avra's filings and website, company headquarters is located at here.

In December of 2014, the company raised $150,000 in an unregistered sale

This article was written by

Big Banks profile picture
Full-time Day Trader

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

Additional disclosure: If you are not an experienced trader, please do not buy or sell penny stocks.

Recommended For You

Comments (5)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.