4Cable TV International Inc. (OTCMKTS:CATV) Explodes up The Charts

4Cable TV International Inc. (OTCMKTS:CATV) managed to jump 397.06% up the charts yesterday, for no apparent reason whatsoever.

There was no warning, no obvious signs and no way to predict the explosion of activity that flung the ticker sky-high yesterday. A glance at CATV‘s charts would probably give investors the impression that the company was just on the receiving end of a massive and successful paid pump campaign – but that doesn’t seem to be the case.

Further, there are no news, no press releases, no social media coverage and no new filings (or amendments to old flings) that could have caused such an uproar. In fact, by all accounts, the company’s filings should inspire the very opposite of hype:

• Cash and cash equivalents – $ 42 thousand
• Total current assets – $339 thousand
• Total current liabilities – $894 thousand
• Net sales – $112 thousand
• Net loss – $178 thousand

Still, as unimpressive as said numbers may be, they’re not the biggest red flag to be found in CATV‘s latest financial report. No, section 7, which is on the matter of Convertible Debt offers much more interesting and informative reading material.

Investors are advised to read that one carefully, as it contains some information that may prove crucial for them. Like the fact that the company has nearly half a million dollars worth of promissory notes issued and outstanding, and most of those convert at “59% of the average market price of the three lowest trading prices in the ten trading days preceding conversion”. This means that if said conversion happened today, the note holders could get their hands on CATV shares as cheap as $0.0021 a piece.

Investors should really consider this possibility. Of course, there is no guarantee that said notes will be converted and the shares dumped on the market, but such a turn of events looks more likely now that CATV stock is no longer as illiquid as it was just days ago.

And, needless to say, if a dump did occur, the outcome is most likely to be catastrophic for the CATV share prices and anyone still holding on to them – especially since the company seems to have nothing that could keep the ticker afloat.