Usell.com, Inc. (OTCMKTS:USEL) Springs to Activity
Don’t rush too much for Usell.com, Inc. (OTCMKTS:USEL), the party is already over, as the ticker opens lower after two peak days. After months of inactivity, USEL added 50% on Friday to stand at 37 cents on dollar volumes of $327,000. The movement follows the announcement of an 8-K filing and a change in directors. The ticker is almost a year away from its last promotion of October 2012.
We have not visited USEL since it last appeared as Upstream Worldwide, Inc. (UPST), also traded sporadically on low volumes, swinging up and down within the constraints of a day, shooting as high as $2.80. October seems to be a key month when USEL wakes up- and this time, the company does it as a reselling website devoted to old or new iPhone models and other electronics and second-hand textbooks.
It’s a far cry from being a gold mining company, and a major red flag that a penny stock should change identities to suit the fashionable industry of the day. Gold stocks were hot in 2012, and many small caps changed identities to suit the general trend, spiking and crashing in the process. So now, USEL rides the trend in technological stocks, especially ones related to the Apple, Inc. products.
But let’s see what the financial filings reveal:
- $221,691 cash (down from $1.6 million in December 2012)
- $1.2 million total assets (down 50% from December 2012)
- $1.25 million total current liabilities
- $1.22 million revenues, up from $591K for June 2012
- $1.13 net loss, narrowed from $6 million net loss
It seems like servicing internet transactions has turned into a more successful model- and now, time will show if this can translate into a less erratic stock price.
USEL competes with NextWorth, another website offering old electronics valuations. But now, USEL may hope to benefit from the exchange program that Apple, Inc. is offering to its customers, to update smartphones and trade the old ones in with the least amount of hassle.
The next few days will show if USEL survives, or it returns to its previous low activity. Caring for web-based services has pushed up other tickers as well, standing behind the success of Virtual Piggy, Inc. (OTCBB:VPIG). Unfortunately, the stock is now down from its peak, hovering around the $1 levels, from its peak at $3.25.
In the past days, EcoloCap Solutions, Inc. (OTCMKTS:ECOS) also burst forward from relative obscurity. Now, the double-zero offering has lost 25$ of its value, sliding from a peak at $0.0012 to $0.008.
If you still believe USEL has a lot to offer, keep in mind that the stock is testing novel ground, and avoid investing sums that you cannot afford to lose if selling pressure pushes the ticker down, or any other event wipes out the value.