Ariel Way Inc. (PINK:AWYI) Another Freefall for the Share Price
06 Jan 2011

Ariel Way Inc. (PINK:AWYI) , a technology and services company, experiences another sharp drop in stock price, after the continuous positive increase from the last week of December. For the three trading sessions this year, the price has dropped from opening at $0.0018 this Monday to closing at $0.00081 on Wednesday. This freefall was accompanied by an increased trading activity, especially during the yesterday`s session, when the volume of traded shares topped 244 million (several times more than its usual range in 2010).

What has started the fluctuation this year is not clear, but it is fair to assume that the intense Wednesday trading might have been a result of the company’s latest announcement. It was an update on current operations and plans of Ariel Way, including planned mergers and acquisitions, but mainly the intention to migrate to initially OTCQB and later to OTCQX.

Many technology companies were badly hit by the crisis, with lack of capital and stockholders rushing to sell. Arial Way Inc. was no exception, as its shares have methodically decreased from $0.01 in the beginning of 2008 to their recent state. Various steps were taken, including acquisitions and new partnerships, but their positive reflection on the stock price was short-lived.

Currently, Arial Way faces a number of challenges. One of them is to become fully compliant with the SEC, in order to return to full OTCBB trading. A new CFO was appointed for the purpose, hoping that he could manage to file all outstanding quarterly and annual reports since 2008. This is a major issue, not only for stockholders, but current and potential partners.

As mentioned in a recent announcement, the company intends to improve their financials and balance sheets by building strong relationships with different creditors, in order to reduce its outstanding debt and liabilities. Of high importance is also bringing business back to the company. Although all the above-mentioned sounds as the right steps to follow, some of them should have already been executed in 2010. Also, from an investor`s point of view, it is hard to confidently buy Arial Way shares, given that they seem to be continually decreasing. Besides, the lack of financial information about assets and liabilities of the company at the present moment is also no reason for optimism.

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