Hot or Not? Three (Promoted) Small Cap Stocks: RSII, INNO & AMPG

Small cap stocks Rising India Inc (OTCMKTS: RSII), Innocap, Inc (OTCBB: INNO) and Amplitech Group Inc (OTCBB: AMPG) have all been the subject of recent paid for promotions or investor relation campaigns. And while there is nothing wrong with properly disclosed promotions, investors who aren't traders and are looking for a long term investment need to be careful. With that said, do these three small caps have what it takes to succeed for the long haul? Here is a quick reality check before you jump in:

Rising India Inc (OTCMKTS: RSII) Just Made an Acquisition

Small cap Rising India Inc is a holding corporation that develops independent living, assisted living and memory center communities. On Friday, Rising India Inc rose 5.29% to $0.05 for a market cap of $1.43 million plus RSII is down 81.56% over the past year according to Yahoo! Finance.

What's the Catch With Rising India Inc? According to various disclosures, transactions of $1.5k, $2k, $10k, $12.5k and $15k have or will occur to mention Rising India Inc in various investment newsletters. On Thursday, Rising India Inc announced the acquisition of Mayer Luce Investments, Inc. - a developer of senior living communities that owns 161 acres. Rising India Inc projects developing a $300 million senior living community with up to 3,000 units in Southern California's Coachella Valley. And while getting into senior living communities makes sense given the country's demographic trends, the recentness of this acquisition means there is probably no point in looking at the company's financials right now and investors should wait for some new ones to appear.

Innocap, Inc (OTCBB: INNO) Is Hunting for a Shipwreck

Top 10 Small Cap Stocks For 2014

Small cap Innocap is a marine exploration company specializing in research and development of ocean recovery projects (as in shipwrecks). On Friday, Innocap fell 45.13% to $0.215 for a market cap of $41.75 million with not much historical data on Google Finance.

What's the Catch With Innocap, Inc? According to various disclosures, transactions of $1.5k, $2.5k and $32.5k have or will occur to mention Innocap in various investment newsletters. At the beginning of July, Innocap announced it had received an agreement with a company based in the Philippines whereby INNO will organize, plan and supervise recovery efforts of a shipwreck located off the coast of the Philippines. The ship appears to contain a cargo of Chinese porcelain made during the Ming Dynasty with Innocap being entitled to 50% of any cargo recovered. A quick look at Innocap's financials reveal no revenues; net losses of $48k (fiscal 2013), $27k (fiscal 2012) and $10k (fiscal 2010) for the past three fiscal years; and no cash to cover $76k in accounts payable near the end of April. So right now, Innocap looks like a shipwreck for investors.  

Amplitech Group Inc (OTCBB: AMPG) Has Been Quiet With the Press Releases

Small cap Amplitech Group designs, develops, and manufactures custom and standard state-of-the-art RF components for the international commercial, SATCOM, space and military markets. On Friday, the Amplitech Group closed at $0.4 for a market cap of $8 million plus AMPG is up 700% since early June according to Google Finance.

What's the Catch With Amplitech Group Inc? According to various disclosures, transactions of $2k, $2.5k, $15k and $30k have or will occur to mention Amplitech Group in various investment newsletters, but I am not seeing any recent news from the company itself. However, Amplitech Group has reported revenues of $997k (2012) and $907k (2011) along with a net loss of $193k (2012) and a net income of $10k (2011). Amplitech Group – which isn't too bad. On the other hand and at the end of March, Amplitech Group had $9k in cash to cover $672k in current liabilities and $804k in total liabilities.