Ubiquity Inc (OTCMKTS:UBIQ) Climbs Higher On More Pump Emails
On June 7 Ubiquity Inc (OTCMKTS:UBIQ) announced their intention to spin off Ubiquity Studious, the company’s broadcasting studio business. Yesterday the company changed its CEO with the appointment of Mr. Nicholas Mitsakos to the position. Can these PRs justify the current climb up the chart of the company’s stock, though? Especially, when after yesterday’s close at $0.35 per share UBIQ now commands a ludicrous market cap of over $77 million.
In order to see just how inflated that valuation truly is all you have to do is to open the quarterly report covering the first three months of the year. Oh wait, you can’t do that because the report hasn’t been filed yet despite the required date for its completion being May 15. The annual report for 2015 that was supposed to be filed by March 30 is also nowhere to found. This means that if you want to see what UBIQ has in terms of financials you will have to rely on the report covering the quarter ended September 30, 2015. Back then UBIQ had:
• $142 thousand cash
• $464 thousand total current assets
• $10.46 million total current liabilities
• $9,400 revenues
• $3.45 million net loss
In addition to these depressing numbers investors also learned that as of April 18, 2016, UBIQ had over 220 million outstanding shares, up from the 154 million at the end of September 2015. Out of the newly issued shares 55.1 million were sold for approximately $1.82 million in cash proceeds making the average price of each share just $0.033.
While you were searching for the reports of the company you might have noticed that the OTCMarkets profile page of UBIQ carries the Caveat Emptor skull and crossbones warning sign. It was placed there in part due to the missing reports but also because of the fact that the company is being regularly pumped by paid promotions. In fact, this is exactly what has been happening since the start of the week.
After the end of yesterday’s trading another flurry of pump emails was issued by the various newsletters owned by Freedom Ventures, LLC. for a $5 thousand compensation. Even today more emails are being sent out in an attempt to create as much artificial hype as possible by MomentumOTC for the much bigger compensation of $15 thousand.
The red flags surrounding UBIQ shouldn’t be underestimated in the slightest. Use caution and commit to any trades only after doing extensive due diligence.
