Avro Energy, Inc. (OTC:AVOE.OB) Can It Get As High As $ 2.5 Again
25 Apr 2010

Avro Energy, Inc. (OTC: AVOE.OB) has made some gains in the past two weeks, but will it reach the $2.5 level as of October 2009?

The stock started climbing since April 19 from its $0.15 level but has failed to show a stable upward trend. The stock shot as high as the $0.3 level but its upward potential is yet to be judged. The continuous stock promotions that run since April 20th have probably failed to bring the desired results, especially taking into account April 21st when the stock actually fell 23%.  The financial highlights cannot be used as a basis for some bullish optimism:

Balance Sheet Data:                      12/31/09          12/31/08

          Cash                          $  14,046           $   1,326
          Total assets                  $  38,990           $   1,326
          Total liabilities             $ 662,904           $  30,407
          Shareholders' equity          $(623,914)          $ (29,081)

Therefore the stock movement is probably a direct reflection of  stock promotions and positive news that the company has released like the announced right of first refusal to acquire an oil and gas property located south of Shreveport, Louisiana, information which was first filed in October 2009 and lead to a price jump as high as $2.5. This was a very speculative move for some investors though as this increase was followed by a sharp decline towards the end of the year.

The company has reported an increase in its production over the first quarter of 2010 and is producing approximately 40 barrels of oil per day. From the last available 10-k the company reported revenue of $36,683 to date. Therefore, the market probably expects more information about the daily oil production and any price movements are likely to reflect progress in this area.

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