x min read

Dolat Ventures Inc (OTCMKTS:DOLV) Consolidating Before Heading Higher

Dolat Ventures Inc (OTCMKTS:DOLV) Consolidating Before Heading Higher
Written by
Jarrod Wesson
Published on
July 24, 2017
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook

Shares of Dolat Ventures Inc (OTCMKTS:DOLV) are consolidating at the level of $0.05 after delivering astonishing returns in June when it crossed the $0.10 level. Have a look at the recent share price action.SourceWe wrote several pieces claiming that the stock should be followed closely, because it was entering into the exciting electric vehicle industry. We said the following in the last article put out in May, 2017 when the share price was trading close to $0.05:

"In our opinion, traders may not yet have researched the company merging with DOLV. Hence, they may not know that it is merging with an EV producer that will obtain many benefits from the Chinese government. Other well known EV stocks have been rising quite a bit because of it and the same could happen to DOLV once investors get to know this new information. Is this a catalyst? Yes, some traders will consider the merger a catalyst." Source: Dolat Ventures Inc (OTCMKTS:DOLV) Looks To Resume Its Bull Trend

Nothing new was put out regarding the acquisition of the company ‘Ji Ming Yang Amperex’. This is the reason to explain the recent decline in the stock and its consolidation. Market participants decided to book profits, which pushed down the share price. Now, it looks like some market players are building a position ahead of the next leg higher.Business and Recent DevelopmentsLet's recap DOLV's background briefly. It was founded in Nevada on April 18, 2006, but it is now headquartered in Wyoming. After the acquisition of JB & ZJMY Co., Ltd. in December 2016, the company entered into the growing EV industry. This target, a Chinese battery manufacturer, owns patents pertaining to long lasting batteries, ideal for use in electric automobiles, and provided DOLV the necessary know how to operate in the sector. The move is fantastic, as the Chinese Government is heavily investing through subsidies "to help car makers achieve large scale production of electric vehicles, and has encouraged taxi fleets and government agencies to use electric automobiles". Hence, DOLV is an exciting stock to capitalize on the growth of the EVs in China.What's the product that DOLV has developed? Read the following:

"The company has developed a small, low-cost, fully automatic, multi-function rechargeable car power plant recharge system. It is a new type of nickel-manganese multi-phase lithium-ion battery: a new material system, a new process, the new battery structure, the energy density per kilogram to 180W, 50% higher than the same specifications lithium iron phosphate battery. JB has also developed a prototype SUV electric vehicle (“EV”) that is able to go up to 600 km (373 miles) on a single charge and is called the “Millet Ming Yang V3”. Source

On July 11, 2017, the company put out its new quarterly earnings release. It was interesting, not only because it included financial information, but because we could read about the transaction of Mr. Wang. In the report, it was mentioned that he is investing new capital to finance company's operations:

"300,000 preferred shares were issued to Mr. Wang DeQun on December 2, 2016. Each preferred share is convertible into 2,500 common shares. During the three months ended March 31, 2017, Mr. DeQun invested additional paid-in capital to fund the Company’s future operations." Source

However, the most exciting item was something else. In the same report, we could finally see the value of the patents acquired with the acquisition of JB & ZJMY Co., Ltd. In the balance sheet, it was written that its intangibles are worth $1,813,987. This is enormous, but the most relevant is that the market may not have seen it. As of July 20, 2017, DOLV's financial statements were not published by Yahoo Finance or OTC Markets. We are the first to disclose the large amount of intangibles of DOLV.Another less relevant information was the change of the company's auditor. On May 25, 2017, DE LEON & COMPANY, PA, became the new auditor for DOLV. The decision to engage De Leon as the Company’s independent registered public accounting firm was approved by the Company’s Board of Directors.Sound Financial Situation As we got to know that the market did not correctly react to the last document put out by the company, we will focus on the financial position of the company. The company has not yet reported sales, thus the most important statement to research is the balance sheet. Have a look at the most relevant lines:

  • Cash: $299,391
  • Other Current Assets: $505,429
  • Patents and Intangible Assets: $1,813,987
  • Total Assets: $2,686,683
  • Total Long Term Debt: $0
  • Total Liabilities: $43,266

The company has no debt and very little liabilities; $1,813,987 in intangibles and total assets of $2,686,683. It is a hidden gem. Most importantly, only those who read this site or check the hidden document recently released could see it. Hence, the net asset is positive.Total amount of shares outstanding Additionally, the following information regarding the amount of shares outstanding was also disclosed in the 10-Q:

"Total authorized: 2,000,000,000 as of March 31, 2017Total outstanding: 777,691,800 as of March 31, 2017Total unrestricted: 736,073,319" Source

This information may be interesting for those interested in calculating the net asset value per share.ConclusionNothing new was said about the current operations of the company. But, we found extensive information about the company acquired in December 2016. The good news is that the amount of intangibles acquired is large. Thus, DOLV seems to be not only operating in a growing sector, but it is also equipped with valuable know-how. It will help in the near future. In this article, we also had a look at the financial condition reported. It is evident that the amount of assets is 62x the amount of liabilities and no long term debt was reported. This is a good news. But, it is even better if we take into account that a few people could see it since Yahoo Finance and OTC Markets did not publish the information. To sum up, keep a close eye on this company. It may surprise us soon.Be sure to check out our complete coverage on DOLVWe will be updating our subscribers as soon as we know more. For the latest updates on DOLV, sign up below!Image courtesy of MR38. via FlickrDisclosure: We have no position in DOLV and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.