Aura Systems Inc. (OTCMKTS:AUSI) is a microcap company that has climbed of 900% since last fall. The share price has appreciated to a new 50 day high and looks to be ready to breakout of its current base higher. It has advanced above its 10 weekly moving average and its 30 weekly moving average which is a long-term bullish indicator. If the 10 weekly moving average can continue trending higher, the advancement in ASUI should continue.
AUSI operates out of California and has over 35 employees. It is a technology company specializing in axial flux induction machine applications for mobile power generation and electric motors. AUSI designs, assembles and sells the AuraGen/VIPER. These products AuraGen/Viper is are patented, integrated, mobile power generator and power management system that installs in a motor vehicle and delivers, on-location, both AC and DC electricity for any end user including industrial, commercial, recreational and military applications.
AUSI has not posted or filed its financials with the SEC since the year ending December 2014. For investors hoping for a turnaround, this is the first step the company needs to take to gain investors’ confidence back. The lack of developments and news coming from AUSI has been disappointing to investors and the stock price has reflected this sentiment. In 2011, the stock traded as high as $1.00. The share price has been decimated falling more than 99% at its lowest point.
Given the financial performance, it is surprising the company is still trading. From the last financial report, the company had almost no cash on hand and only $1 million in total assets. Total liabilities exceeded $36 million leaving shareholders holding the bag. Shareholders equity has been declining at a rapid rate of approximately $2 million a quarter.
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AUSI is currently trading at a $7.27 million market valuation. The current market value seems rich for a company that has huge outstanding liabilities and significantly negative shareholder equity with no recent developments or advancements. The first step for the company to gain investors’ confidence will be to become current with the SEC and begin providing a shareholders updates.
We will be updating on AUSI when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with AUSI .
Disclosure: we hold no position in AUSI either long or short and we have not been compensated for this article.