Yesterday the share price of Composite Technology Corp. (OTC:CPTCQ) tanked dramatically as the company filed voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. In other words, CPTCQ is bankrupt and if for some investors the event has been anticipated, the extreme volume and the 3-year low suggest that for many others the news must have been a shock.

Under its new symbol, CPTCQ stock closed the market at $0.071 and with a 62.63% loss in the value from the previous day close. Trading volume was 12,51 million shares and during the day CPTCQ share price fell to $0.04, a sharp more down and a shocking break up of the previous trading channel.

Yesterday the company announced that it has filed for bankruptcy and will from now on run its operations as a “debtor-in-possession”. The 8-K filing says also that at the beginning of the month some of the company’s lenders have given a notice of default for some of CPTCQ debts and have requested that the company pays immediately obligations of $10.5 million in principal together with accrued interest and relevant fees.

As the outcome suggests, this couldn’t have happened that easily. In the last two months Composite Technology used all available sources to get some cash and cover its most urgent capital needs. The company entered into two promissory note agreements to provide bridge loans for a total of $700,000, whereby the lenders received also 1.4 million warrants to purchase shares of CPTCQ stock at a price of $0.25 per share. The warrants may be exercised in a “cashless” manner unless registered for resale under an effective registration statement.

Before that, in February the company did not hesitate to borrow money even from its CFO, from its President and from two of its Directors. The total amount borrowed was $236,274, again as a bridge loan and these lenders also received warrants to purchase 472,548 shares of the company’s common stock at $0.25 per share.

It looks like nothing could prevent the inevitable, which some investors probably anticipated already after CPTCQ filed its latest financial report. It showed that at the end of 2010 CPTCQ has current assets of $19.3 million against current liabilities of $52.8 million. The desired increase in the customer orders and respectively in the sales did not come over the years and for the year ended September 30, 2010 the company incurred a net loss of $19.8 million and had negative operating cash flow of $17.4 million. The accumulated deficit up to that date amounts for over $277 million.

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It looks like AISYSTEMS, Inc. (OTC:ASYI) is getting ready for the climb. After a number of negative price changes over the past week, the stock tried to secure its market position by promotions.

The campaign started yesterday, when ASYI was promoted by Penny Players Club and OTC Market Bulls and today the campaign continues. Each of the promoters was paid $100.000 for the campaign, however, the paying party was not revealed. In this way, the total compensation for the promotions hit $300.000 so far and now it is interesting if they will continue. On the other hand, the second question is will the campaign bring the heavy gain to AISYSTEMS?

In any case, the company decided to re-ensure its stock position by producing some hot news on its business. This morning, ASYI reported it was inviting selected airlines, airline industry planners, executives, management consultants and financial analysts to take part in its jetEngine^TM BPS Beta Customer Program. According to the announcement, the company believes that when the airlines begin to use the jetEngine^TM software, its commercial launch will be successful.

Successful or not, it is yet too soon to be determined, however, the positive news along with the ongoing promotions could pump up ASYI stock price, unless investors are too suspicious to buy it.

AISystems, Inc., formerly Wolf Resources Inc., is a designer and developer of software that offers solutions for strategic airline management. The company began the year with higher prices, though currently the stock has been in a downtrend.[BANNER]

On March 31, ASYI filed a notification for late filing regarding its annual results, while the quarterly ones don’t inspire anyone. According to the 10-Q, as of end-September, 2010 liabilities of AISYSTEMS were about seven times higher than its total assets and the stockholders’ deficit went over $10 million. At the same time, the deficit accumulated during the development stage period has increased to $67 million, excluding the other losses by the company.

The management team claims that AISYSTEMS aims to complete a $5 – $10 million equity financing in early 2011. However, there is no assurance they will be able to raise the necessary funds to continue operations as this could result in significant dilution or a loss of investment to stockholders.

It seems that now it is only the promotions that can push up ASYI stock price, though if the company does not ensure additional capital for its operations its continuation will be placed under a substantial doubt.

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Neonode, Inc. (OTC:NEON) started to climb up last week. On Friday, the progressive mode exceeded 30% and the traded volume of NEON jumped over 3 million shares.

Is this a new bullish trend for the stock, or a temporary high move? It is just a matter of time to be seen. Though, there is a certain reason for the sudden high trade. On Jan 20, Neonode reported that it has entered into a multi-year technology license agreement with another global retail electronics company to incorporate NEON’s touch screen solution into its family of products. The announcement states the contract is considered as the largest technology license agreement Neonode has ever signed, however, the customer’s name and the product category were not revealed due to privacy issues. The news about the agreement was first published at the beginning of this month, though it was re-announced over the past week. Apparently, it influenced the stock movement and NEON was up again.

Neonode Inc. offers optical touch screen solutions, software licenses and engineering design services for hand-held and small to mid-size devices. Apart from the latest news, NEON has not provided any updates on its activities since mid-October 2010, excluding the company’s Amended and Restated Certificate of Incorporation for increasing the number of authorized shares from 700M to 850M and for increasing the number of authorized shares of common stock from 698M to 848M.[BANNER]

According to the quarterly report of Neonode, by the end of Sep. 2010 the company’s total assets were 27 times lower than its liabilities, while the accumulated deficit exceeded $105 million. Besides, the stockholders’ deficit of NEON pointed over $16 thousand, not including the net loss and the diluted loss of $0.02 per share. Neonode stated that since inception

The extremely seldom traded Derycz Scientific, Inc. (OTC:DYSC) stock that has an average trading volume of around 1,000 shares gained incredible investor attention yesterday. The market seems highly interested and optimistic about the young company.

Though the volume spiked from zero to 395,000 traded shares over a day, traders were cautious and the share price added only 3.19%. The close at $0.97, which was also the highest price offered within the day, gives DYSC the chance to returns back above the $1 level.

The news about DYSC that caused the run-up on the shares yesterday appears to be the company’s annual report, filed after the market closed on Tuesday. Investors probably recognized that the market value of the stock currently does not quite correspond to the sales the company is making, which would suggest a price of at least $1.91 for a share.

DYSC had a good year for a young company, continuing the stable growth rates. The business is to provide copies of published content in electronic or paper form, main current and potential customers being the marketing departments of large companies, researchers and regulatory personal. Due to a substantial 67% increase in the customer base over the last year, revenues reached almost $25 million, a 70% increase from the previous year. But as the costs of that sales increased even more, by 73%, an operational profit of nearly $4 million was possible, but not a net profit.

As it often happens, investors must have bet on potential yesterday. DYSC also has to some extend stable financial condition and has secured a line of credit with a bank for up to $3 million in July. Positive outlooks came also from the 10-K, where the managements presents its enthusiastic future plans to get profitable soon through further client-base expansion, new products and improved service.

DYSC also plans to expand through the acquisition of other companies and states to have already three potential targets. That may sound too enthusiastic, however, although good on the long-term. The cash available so far may not be enough and the acquisitions will have to be made through stock transactions, which may dilute shareholders.

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APAC Customer Services, Inc. (NASDAQ:APAC) has been going down these days. Over the last week, the stock price reached $6.60 per share, while currently it is down to $5.55.

Records show APAC was promoted two days ago, but it seems that the promotion doesn’t work good enough for the company. Though its traded volume almost doubled, the price keeps moving down.

However, APAC is highly optimistic about its future. The company reported positive 2010 first quarter results and expects to gain over $350 million in sales during the next fiscal year.

APAC Customer Service is a public company, built on client relationships with Fortune 500 and global market leaders. During the past month, its stock was up 7.57%, but presently the price change is -2.29%, which does not fit APAC’s management expectations.

Another proof on the company’s negatives, is the fact that its net income by April, 2010 is five times lower as compared to its value in January, this year. But still, APAC claims that the company relies on its sufficient cash to meet its projected operations and repay its debt obligations for the next twelve months.

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It seems someone turned the lights back on for ZVTK shareholders. The company received, per today’s press, a $100,000 order. The stock rose 64% on a very impressive 470 million plus share traded day.

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ZVTK – Oh No Not You Again

After today’s press release and subsequent price action, the Guru has added AMMX to his buy and hold list.