XLI Technologies Inc (OTCMKTS:XLIT) Crashes

Like a high performance Ferrari that crashes into the back of a truck, shares of XLI Technologies Inc (OTCMKTS:XLIT) has witnessed the same fate. With either case, neither will be the same. In the Ferrari's case, the driver was travelling too fast and lost control of his vehicle. In XLIT's case, the promotion was pumped as far as it could by Trader's Choice Group and it was time to take a dump. When there's no more buyers, it's time for the promoters to make their exit and move on to the next deal. For those owning XLIT, they're left holding the bag. The last we heard from Trader's Choice, they were trying to get as many bagholders as possible.

Take advantage of the reliable recovery pattern.Right now, XLI Technologies (XLIT) is experiencing a pull-back below $1 and is presenting a buying opportunity to fast acting traders. Each and every time XLIT dips below $1.00, it quickly recovers above $1.25+ within days.Look at how much money buyers of XLIT made on the last five retracements, this is a remarkably reliable trend:The last retracement, 68.8% GAINS!XLIT dipped to $0.77 and recovered to $1.30 within 8 days.Before that, 56.6% GAINS!XLIT dipped to $0.83 and recovered to $1.30 within 7 days.The time prior – 73.6% GAINS!XLIT dipped to $0.72 it recovered to $1.25 in 3 days.The time before that, 104.5% GAINS!XLIT dipped to $0.66 and recovered to $1.35 just 9 days.Prior to that, 225% GAINS!XLIT dipped to $0.44 and subsequently traded to $1.43 in 14 days.…now another pullback is underway.Are you going to make 50-200% POTENTIAL GAINS?XLIT has dipped to a low of $0.81 and could trade a powerful recovery run.This is an immediate situation!Don’t let fear cause you to miss out on another great run!Take control of your trading.

This email was sent just before XLIT closed at $.84 per share. We said at the time:

In our opinion, this was a sign of desperation and an attempt to get bagholders into the stock. To make the case that the stock is a trader is not reassuring to long-term investors. We agree that those that have traded XLIT, bought the dips and sold the rips, have indeed done quite well. We know with chart patterns that this can be done. In order for XLIT to bounce, support at $.72 needs to hold or there will be significant chart damage done.

We think what also speeded up XLIT's crash was the SEC's halt of another promotion, Broke Out Inc (OTCMKTS:BRKO). After the promoters of XLIT saw another promotion get halted, they knew they had to get out while they could. After all, XLIT could get halted as well. The reason being is that XLIT's financials are horrible. The latest 10-Q said:

During the three months ended November 30, 2015, the Company recorded revenues of $10,000 related to the sale of light sheets, and cost of goods sold of $3,010. The Company also incurred general and operating expenditures of $115,835 during the three months ended November 30, 2015. At November 30, 2015, the Company had assets of $175,698 compared to $105,028 at May 31, 2015. The Company had total liabilities of $369,048 at November 30, 2015 compared to $105,000 at May 31, 2015. We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, there is substantial doubt of our ability to continue as a going concern.

Pretty hard to justify a market cap of over $100 million isn't it? Even at $.23 per share, Yahoo! Finance says the company has a $24 million market cap. Even after shares dropped over 80%, the current market cap is still not justifiable.We warned investors last week to get out of XLIT. Since that time, we have not heard anything from Trader's Choice Group. We suspect that when we do, it will be an email on their new deal and not on XLIT. The easy money has already been made in XLIT. The promotion of XLIT looks to be over as shares were dumped on massive volume. This was not an attack by the shorts, but instead promoters dumping stock. The volume was too large for it to be anything other than pure selling. We will be updating Insider Financial as soon as we know more. For continuing coverage on XLIT, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in XLIT and have not been compensated for this article.