Avalon Globocare (AVCO) Stock: The Wolf of Wall Street?
Low-priced biotech stocks are often targets of pump-and-dump manipulation scams or other activity designed to make money for a select few, not you (think The Wolf of Wall Street). Unfortunately, many investors have already felt the sting of these pump-and-dump actions. Avalon Globocare (AVCO) is a good example.
AVCO stock jumped as much as 140% on Tuesday, before giving back its gains the day after. Why? Your guess is as good as anybody else’s, but it does look like a classic pump-and-dump scenario. There hasn’t been a word’s worth of news coming out of Avalon since its recent announcement that it will join forces with Arbele to co-develop next generation, transposon-based Chimeric Antigen Receptor (CAR)-T and CAR-Natural Killer (NK) cellular therapies.
Avalon GloboCare is a global intelligent biotech developer and healthcare service provider dedicated to promote and empower high impact, transformative biotechnology and their clinical applications, as well as healthcare facility management through its core platforms, namely “Avalon Cell” and “Avalon Rehab.”
Let’s take a look at the latest numbers:
AVCO’s revenues for the third quarter ended September 30, 2018 were $413,503 versus $317,450 for the third quarter ended September 30, 2017. The increase in revenues was due to development services and sales of developed products, and medical related consulting services. Operating loss for the third quarter ended September 30, 2018 was $2.4 million versus operating loss of $0.7 million for third quarter ended September 30, 2017, which reflects increased SG&A expenses to support the anticipated growth, as well as an increase in public company expenses in advance of the planned listing on a national exchange. Net loss attributable to Avalon GloboCare Corp. common shareholders for the third quarter ended September 30, 2018 was $2.3 million or ($0.03) earnings per share, versus net loss attributable to Avalon GloboCare Corp. common shareholders of $0.7 million or ($0.01) earnings per share for the third quarter ended September 30, 2017.