[[tagnumber 0]][[tagnumber 1]]The oil industry has recently been under careful scrutiny in investorland and the reason is clear and simple: almost any industry–related business is influenced by the fluctuations in the price of oil. Linn Energy LLC (NASDAQ:LINE) makes no exception a quick glance at its chart performance for the last 12 months proves just that.[[tagnumber 2]] [[tagnumber 0]]It was earlier this week that the price of crude hit a six–and–a–half low. It was yesterday that LINE slid further down to $2.11 per share. Compared with its 52–week high of $31.80 per share, this makes for an astonishing 93% depreciation in just under twelve months.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]While dwindling oil prices have adversely impacted the stock price of LINE, there are some other factors that have contributed thereto. The company is simply losing quite a lot of money and has been doing so for the last four quarters on record. The most recent 10–Q report for the second quarter of 2015 was particularly bad as Linn barely managed to generate half of its Q2 2014 revenues and scored a mammoth net loss of $379 million. These numbers explain why LINE’s management decided to suspend its dividend distribution as of October 2015, which in turn had a devastating impact on the company’s price per share.[[tagnumber 2]] [[tagnumber 0]]In short, LINE is suffering on the charts not only because of low oil sales, but also due to its less–than–stellar financials. And there is little to suggest that the latter will improve any time soon. Nevertheless, LINE shares are up 37% today following a minor 10% resurgence in oil prices.[[tagnumber 2]] [[tagnumber 0]]Whether this will mark the beginning of the end for oil’s heavy downward trend is still fairly early to say. What seems clearer, however, is that a huge rally in LINE shares fueled solely by increasing oil prices could only work in the immediate term. To ensure long–term growth, management will need to turn the business profitable. Considering that the former CFO has left the company in pursuit of other opportunities, the new one will have to rise to the occasion.[[tagnumber 2]]
[[tagnumber 0]][[tagnumber 1]]The stock of Ekso Bionics Holding (OTCBB:EKSO) started the month rather strongly, but went on to slide down the charts before dropping below the $1 per share mark, for the first time in quite a while.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The ticker managed to recover the lost value quickly, but there was a little hiccup in the end of last week. More recently, the company stock has been doing rather good. This is not surprising, considering the fact that EKSO is one of the OTC companies that have some of the best numbers contained in their balance sheets.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 9]] [[tagnumber 10]]cash: $16.2 million[[tagnumber 11]] [[tagnumber 10]] current assets: $22.1 million[[tagnumber 11]] [[tagnumber 10]]current liabilities: $8.3 million[[tagnumber 11]] [[tagnumber 10]]quarterly revenues: $2.1 million[[tagnumber 11]] [[tagnumber 10]]quarterly net loss: $5.6 million[[tagnumber 11]] [[tagnumber 20]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]After all, the company is working with the US government on the TALOS project and is currently providing exoskeletons for medical use. This might be the reason why [[tagnumber 24]]EKSO[[tagnumber 25]] started going up the charts once again, despite the lack of news coming from the company.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Yesterday the ticker gained another 11.98% in value after it was touted by Seraphim Strategies, a paid promoter. We also saw a total of 1.07 million shares being traded as [[tagnumber 24]]EKSO[[tagnumber 25]] was going for a close at $1.31, which generated $1.31 million in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The company stock is going up in today’s session as well, but the current market cap of $133 million suggests that you should be sure to do your due diligence and weigh out all the risks before putting any money on the line.[[tagnumber 2]]
[[tagnumber 0]][[tagnumber 1]]The stock of Propanc Health Gorup Corp (OTCMKTS:PPCH) has had a decent run since the beginning of the year and people who got in at the end of 2014 are reaping quite the profits. That is even after the not–so–good performance that we saw from the ticker in this month.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The performance, however, wasn’t that surprising. [[tagnumber 6]]PPCH[[tagnumber 7]] is a biotech company that is still in the stage of animal trials, so it will be a long time until we see any potential revenue–generating products from them. Meanwhile, the numbers in the company’s balance sheet have not been very promising, compared to other OTC biotech companies. Here is an example from their Q1 report.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $168 thousand[[tagnumber 13]] [[tagnumber 12]]current assets: $308 thousand[[tagnumber 13]] [[tagnumber 12]]current liabilities: $2.16 million[[tagnumber 13]] [[tagnumber 12]]revenue: ZERO (since inception)[[tagnumber 13]] [[tagnumber 12]]quarterly net loss: $454 thousand[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Despite all this we see that [[tagnumber 6]]PPCH[[tagnumber 7]] has managed to recover in the past few sessions. After the company stock dropped 18.29% in Monday’s session we saw them being touted by The Wealthy Biotech Traded whose parent company is being compensated $60 thousand by [[tagnumber 6]]PPCH[[tagnumber 7]] in the form of a convertible note as well as being paid another $5 thousand per month for the promotional effort.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This led to some green closes and we saw [[tagnumber 6]]PPCH[[tagnumber 7]] gain 11.11% in yesterday’s session, closing at $0.04. A total of 8.4 million shares were traded and generated $332 thousand in daily dollar volume, which showed some heightened investor attention.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]It seems that the pump–induced hype, however, is gone and [[tagnumber 6]]PPCH[[tagnumber 7]] is trading 4.50% in the red as of the writing of this article, so you should be sure to weigh out all the risks that we have previously talked about before putting any money on the line.[[tagnumber 2]]
About a month ago, Intelligent Highway Solutions Inc (OTCMKTS:IHSI) logged its first truly active session in a while. In a matter of six and a half hours, investors managed to trade nearly $340 thousand worth of shares and the stock gained a whopping 96%.
Something similar happened yesterday. The volume was big enough to place IHSI on the list of the most active OTC tickers for the day and the price went up by an equally impressive 75%. The only difference is, July’s jump left IHSI at a breath under $0.005 per share whereas right now, it’s sitting at $0.0007. So, what happened?
The report for the second quarter happened. If you take a look at our article covering the surge from a month ago, you’ll see that back then, shareholders and potential investors were quite eager to see the Q2 results. We tried to warn our readers that there can be no guarantees around the solidity of the figures in the 10-Q, but despite this, many people predicted some decent financials.
The 10-Q in question came out a little over a week ago and it showed those people how wrong they had been. Here’s a summary of the most important figures:
- cash: $8,401
- current assets: $137,440
- current liabilities: $3,164,609
- quarterly revenues: $8,612
- quarterly net loss: $1,338,958
Believe it or not, the atrocious balance sheet isn’t the 10-Q’s biggest problem. Neither is the drop in revenues which amounts to 98% and 95% on a year-over-year and a quarter-over-quarter basis, respectively.
The biggest problem comes from IHSI‘s horrifyingly toxic debt and the equally appalling dilution. Not much conversion took place during the second quarter which means that on June 30, the company owed $765 thousand in principal and $101 thousand in interest under various notes which were convertible into stock at discounts ranging from 35% to 52%.
Between July 9 and August 14 (a period of just thirty-six days), the note holders converted $246,235 worth of debt and interest into 269,037,466 shares of common stock. During the same period, the company issued a further $49,466 worth of new notes which are convertible at discounts ranging from 40% to 45%.
All in all, the convertible debt, coupled with the appalling results absolutely squashed the stock’s value and apparently, the management team decided that they need to comment on IHSI‘s situation. They said that they are disappointed, but not worried.
A private equity line was put in place a couple of weeks before the company published its 10-Q and the people at IHSI‘s helm reckon that with its help, they will be able to repay the rest of the convertible notes. Curiously enough, the equity line in question wasn’t covered by an 8-K form, but it is mentioned in the 10-Q. According to it, an unnamed investor will have the right to buy up to $5 million worth of IHSI‘s stock at a 30% discount.
The management team also talked about a distribution agreement in the works. It was finally confirmed yesterday when the company announced that it will soon start to offer a lightning system called Suncloak which, another press release from earlier today says, is very clever.
The press releases certainly sound nice, but isn’t it all too little, too late? And is selling stock at a 30% discount instead of converting debt at a 40% discount really going to make that much of a difference? That is up to you to decide.
About fifteen minutes after today’s opening bell, IHSI is sitting at $0.0008 (about 14% in the green).
After months of inertia, CES Synergies Inc. (OTCBB:CESX) finally saw some active trading yesterday, and was pushed 13.27% up the charts to boot.
This turn of events could be called “unexpected” at the very least. Why?
Because CESX had been gathering dust in OTC Markets’ limbo for quite some time now, and its stock was nearly illiquid during the last few months. Further, there does not appear to be an obvious reason for it to get on the investors’ radar just now. The company’s latest financial report was filed more than two weeks ago and it impressed no one, and CESX‘s media exposure since that time doesn’t appear to have been the cause for much interest either.
Currently, CESX‘s chart pattern is reminiscent of a lazy OTC Markets paid pump – but there doesn’t seem to be anything of the sort going on here either. So, for all intents and purposes, CESX seems to be on a mystery run. But how long will said run last?
Long story short – it is difficult to determine that. Some due diligence on CESX yields the following numbers:
- Cash – $193 thousand
- Total current assets – $4.9 million
- Total current liabilities – $4.9 million
- Revenues – $5.1 million
- Net Loss – $1.2 million
These figures certainly leave a lot to be desired, but to the company’s credit it certainly does not appear to be idle, in spite of its obvious lack of cash on hand. There is, of course, the matter of the $1.9 million that CESX has mentioned under “Convertible notes payable” – no clarification about that number seems to be available in its report.
On the other hand, dilution does not seem to be an issue with CESX. Its shares outstanding have not changed in more than a year, so it has that going for it at least.
In conclusion, what do we have on CESX? It is a company with very little achievements to date, that has been kicked into motion by an unknown force.
Seasoned investors would have noticed by now that there are too many variables and unknowns in this situation – which is why it would be wise for anyone wishing to trade CESX stock to tread lightly.
The two-day push for recovery made by Solarwindow Technologies Inc (OTCMKTS:WNDW) seems to have come to an abrupt end. Yesterday the stock opened with a gap down and proceeded to deflate 12% by the closing bell. Volume cooled off to 272 million shares.
WNDW is a company working towards the commercialization of its solar window technology. The big idea is to have translucent window panelling installed on skyscraper towers and have that panelling generate clean energy. While this is a great concept, WNDW is not quite ready to bring it to market. The company has been working on this technology for a while, with press releases dating back to early 2013 that speak of advancing the technology “towards commercialization”.
According to the company’s latest 10-Q report, WNDW still has no idea when the technology will be successfully commercialized, nor how much more money will be needed to get to that point. With this little clarity concerning the development of the solar window technology, investors can’t be blamed for being reluctant.
WNDW picked up some speed recently, following the announcement of a webcast which was to showcase to the world the solar panels generating clean energy for the first time ever. Sadly, what was announced as a webcast was really a pre-rerorded and edited video, showing a lot of endearing imagery and a few seconds of a string of lights coming on, supposedly powered by the window panel.
The market reacted to the video without delay and in an unambiguous manner – WNDW dropped minutes after the PR containing the video link and ended the session 22% in the red.
With $69 thousand in the bank, no clear idea how much it will cost to commercialize the solar windows, a disappointing video and a price that had previously been inflated to nearly $4.00 per share, WNDW warrants extra caution.
For the past seven sessions the stock of Kimberly Parry Organics Corp (OTCMKTS:KPOC) has not registered even a single one ending in the red. Although the daily gains have not been that impressive the stock has still been able to climb from a close at $0.54 on August 18 to a close at $0.67 yesterday. It should be mentioned that $0.67 was the high of the day for the stock.
The problem, however, is that there is absolutely nothing that could explain not only the positive performance but the fact that KPOC are sitting at record for the past 52-weeks price ranges. With yesterday’s gains the market cap of the company has reached $76.8 million. How unreal such valuation truly is becomes obvious after just one look at the latest financial report. KPOC finished the quarter ending February 28 with:
• ZERO cash
• $252 thousand total current assets
• $2.9 million in current liabilities
• $39 thousand in quarterly revenues
• $95 thousand in quarterly net loss
By the end of August the company should file its annual report and investors will see if the balance sheet has improved at all. The possibility of the annual report not being done on time is quite real though. After all, the Q1 report was submitted three months after the required deadline. Not to mention that for the entire 2014 the company has only 2 reports and they were all filed in January, this year.
The share structure of the company is another cause for concern – in five years KPOC have been forced to perform three reverse splits. The 1-for-8000 split from April 2014 left the company with a little over a million outstanding shares. Two months later 152,876,900 shares valued at $0.0001 got issued as a reduction of a note payable.
Without any information about the current state of the company, the latest PR came on August 13 and announced that KPOC has contracted LandGrab, a global branding group that has almost no web presence, investors should be extremely careful when approaching the stock at the current inflated price. If the report does come out by Monday and the numbers inside are still as grim the positive momentum behind the stock could disappear in an instant.
Back in January 2014, Bionovelus Inc (OTCMKTS:ONOV) was called Firstin Wireless Technology Inc. It was traded under the FINW symbol, its price hovered around $0.30 and the people who were running the company back then were saying that they are going to spark “the mobile VoIP revolution”. They did nothing of the sort.
In fact, they failed rather miserably at making good on their promises and they left quite a lot of disappointed investors behind. They’re gone now.
The name and ticker symbol were changed in May, a reverse split was effected at the same time, and a couple of weeks ago, the company officially announced that it’s now headed by Mr. Jean Ekobo. Some people around the message boards are still not happy. A few are even prepared to call the company “a scam” because of Mr. Ekobo’s name.
We don’t think that’s fair. We reckon that conclusions about a company’s strength should be drawn from thorough investigation, and not from the way the CEO looks or talks. Naturally enough, a thorough investigation is what we’re going to do now.
You’ll see right from the get go that although they are doing it for all the wrong reasons, arguing with the people who call ONOV “a scam” is going to be really difficult. Instead of having a real office, for example, the company uses a mailbox rental service.
Perhaps not surprisingly, the financial statement is pretty appalling as well. Here’s what ONOV recorded at the end of the second quarter:
total assets: $1,188,818
total liabilities: $1,027,362
NO revenue since inception
quarterly net loss: $30,615
The company’s financial situation was quite horrific a few months ago and there’s been no press release to suggest that it’s different now.
To top it all off, the stock’s behavior is rather strange. Yesterday, for example, it spent the majority of the session doing nothing, but at one point, it absolutely exploded. In a matter of about an hour, it managed to add nearly 43% to its value and it closed the day at exactly $0.10 per share. It must be said, however, that while this may look weird at first, it might just start to make sense once you see the emails that landed in our inbox mere hours after the end of the session.
Penny Stock Titans and its sister newsletters received $10 thousand and in exchange, they sent a total of four alerts, claiming that ONOV is about to explode today. The inexplicable surge that happened just hours before the emails might just suggest that someone knew about the pump, and that this someone decided to load the proverbial boat before everybody else.
Of course, there’s no way of knowing for sure whether that’s the case or not, but if it is, the people who jumped in yesterday might be in a hurry to exit their positions and secure their profits. And we all know what is going to happen if they do.
One of the biggest OTC sob stories of this summer is making waves once again. After a two-month period of quiet, MaryJane Group Inc (OTCMKTS:MJMJ) is rearing its head once more, closing up in double digits two sessions in a row. Yesterday MJMJ stopped 15% up at $0.0015 per share.
MJMJ happens to be one of the companies who executed the PR equivalent of a proper pump job, but without the need to involve any actual stock promoters. Back in early June the company announced it was going to open the first cannabis resort in the US. The stock went wild, peeling off from the bottom end of double-zero land and climbing to over a cent per share.
Unsustainable percentile movement aside, things really went south when it turned out that the so-called CannaCamp 2015 was simply not happening and had been canceled due to MJMJ‘s partners failing to “secure” the ranch which was supposed to host the camp. Many people chose to run with the company-induced hype and got burned bad as MJMJ came crashing back down to levels just above $0.001 per share.
After pulling this stunt that shot investor confidence to bits, MJMJ simmered under $0.002 for a couple of months but is now shuffling heavier volumes and trying to climb again. The trigger for the move seems to be a press release that dropped on Tuesday, informing of the “tremendous growth” the company was experiencing.
This growth amounts to the total rooms rented in MJMJ‘s Bud + Breakfast locations for the three months ended July going up from 643 to 823, against the quarter ended March. Amazing news aside, here is what the company had to show for itself in its latest annual report that went up on July 27:
- $44 thousand in cash
- $117 thousand in total company assets
- $655 thousand in current liabilities
- $609 thousand in annual revenues
- $2.6 million in annual net loss
How much those extra 180 rooms rented over the company’s first fiscal quarter can help turn this ship around and bring MJMJ closer to profitability is a different question. It should also be noted that MJMJ increased its authorized shares twice in 2015, to reach its current 2 billion AS. Despite its optimistic PR and the fact that it moved 36% up within two sessions, MJMJ‘s CannaCamp stunt is probably still too fresh in the memory of traders.
Yesterday the stock of MyEcheck Inc (OTCMKTS:MYEC) failed to move upwards even by an inch and closed at exactly the same price as the previous session – $0.0156. The outcome was far from encouraging but at least the company is still holding on to the majority of the gains it made on Monday.
At first glance there is absolutely nothing that could explain the stock’s surge from the start of the week. The latest PR issued by MYEC is now more than two months old while the recently filed financial report is not exactly confidence-inspiring. It showed that at the end of June MYEC had:
• $22,850 cash
• $154 thousand total current assets
• $2.1 million total current liabilities
• $181 thousand revenues
• $1.6 million income
In addition to the minimal cash reserves the company has a working capital deficit of approximately $1.9 million and an accumulated deficit of $6.6 million. MYEC believes that its current resources won’t be enough to meet its needs even for the near future. This means that the company is in a dire need of new sources of funds. The share structure is equally as alarming. As of June 30 MYEC had nearly 4.1 BILLION outstanding shares. The total authorized amount is 4.9 billion.
Despite the serious red flags there is still hope left. On its Facebook profile MYEC has promised to issue several important PRs. The problem is that once again almost everything is suffering from delays. Their Apple iOS eMobile app was supposed to become available on Monday with a PR issued once the app hits the Itunes store. There is still no sign of the PR. Due to a confidentiality agreement the identity of MYEC’s bank customer in Africa can only be revealed after the bank launches the service publicly. This was supposed to take place on August 21 but was pushed back and is now expected to be done before the end of the month. According to its latest projections MYEC also expect the revenues to ramp up during the fourth quarter of the year.
Getting too excited may not be a good idea though. Even if the company finally publishes an official announcement about any of these events the risks surrounding their stock will remain significant. Use caution and commit to trades only after doing extensive research.