Cloud Security, Corp. (OTCBB:CLDS) Makes a Comeback
Cloud Security, Corp. (OTCBB:CLDS) is making a comeback, almost recovering from the slide at the beginning of the year. On Thursday, the ticker added more than 8%, being bought to the tune of $402,000. CLDS stands at 80 cents, on buying volumes unseen in about a month. Cloud computing was all the hype among penny stocks a while back, but CLDS was left behind by pumpers in May, crashing by more than 50%. The stock opened moving downward on early Friday trading. 
We left off CLDS in May, and found the company returning with a few new developments. A corporate update from the end of September states the company has consolidated its operations under one name, Cloud Security Corporation, and moved to a new website. Along with developing security technology, the company looks for acquisitions and partnerships.
The latest quarterly report from July show:
- $39,598 cash
- $19,217 total liabilities
- $270,879 net loss
While CLDS is not buried in debt, it is still struggling, with zero revenues from its supposed cloud security operations. So it’s a wonder how the company would achieve the proposed buyouts.
One possible answer is that those deals are still very preliminary. CLDS just has an agreement to buy Hong Kong-based App Ventures Ltd. If this deal occurs, it will be an entrance for the Asian mobile application company into the OTCBB markets. The CLDS executive Safa Movassaghi said the computing and security company is on the lookout for investors or new buyout targets. The company called in $2 million of financing from Kodiac Capital Group, but time will tell if this would keep the business model and the stock price in respectable ranges.
The ticker got an extra boost from a report on OTCBB stocks that are moving right now, by Small Cap Specialists and OTCBB Journal.
The stock of CLDS is rather volatile, recalling that of a much lower-priced 3D Eye Solutions, Inc. (OTCMKTS:TDEY), a double-zero selection that was promoted on and off in the past months, growing four times in September.
Beside cloud computing, 3D manufacturing met with a similar hype, boosting the stock of Sigma Labs, Inc. (OTCMKTS:SGLB). In the past three months, SGLB had quite a wild ride, swinging between 12 and 4 cents. Now, the ticker retreated a bit to 10 cents.
If you are enticed by the comeback, research the company well and do not rely too much on positive developments, as corrections of 50% or more are not unusual.
