Cloud Security Corp (OTCMKTS:CLDS) Surges Once Again
It’s been nearly nine months since the pumpers received $2.5 million to artificially inflate Cloud Security Corp (OTCMKTS:CLDS)’ share price. As you probably know, a landing page was set up back in March and it gave the ticker a “2013 price target of $3 per share“. Since then, touting has been pretty much constant.
The third parties have spent an enormous amount of cash on emails, glossy paper mailer brochures, and more landing pages in an effort to give CLDS a boost, but their failure, we should say, has been quite spectacular. On November 26, the ticker hit an all-time low of $0.09 which should give you an idea of why you should base your investment decision on your own due diligence, rather than on bright promises written by people who are paid to tout stocks.
Despite the miserable performance, the pumpers are not ready to give up just yet. A total of twenty-two emails have hit our inbox since the start of the month while the compensation according to our database comes in at $55 thousand. You can find Penny Stock Prophet and Penny Stock Parlay among the more prominent outfits taking part and it’s clear that, to some extent at least, they have managed to breathe a new lease of life into the ticker.
The company also lent a helping hand yesterday when around half an hour before the opening bell, they issued a press release saying that they have signed an asset purchase agreement according to which they are about to acquire App Ventures Ltd.
Obviously, traders reacted and the price went up by 32% while the trading volume amounted to no less than 2.1 million shares. The thing is, what will this new acquisition result in?
CLDS and App Ventures entered into a joint venture agreement back in March (just as the pumpers were setting up their campaign). Unfortunately, right now, nine months later, the only thing coming out of the partnership is a granted patent for (in CLDS‘ words) a revolutionary piece of technology.
What’s more, the press release, as exciting as it sounds, fails to mention any details surrounding the acquisition of assets. There’s no 8-K filing either, but the latest 10-Q says that according to the initial joint venture agreement, CLDS has the option of buying out App Ventures for 2 million common shares.
And speaking of the latest report, we should probably note that it looks rather disappointing. As of August 31, CLDS had:
- $18,689 in cash
- $18,989 in current assets
- $50 thousand in current liabilities
- no revenue since inception
- a quarterly net loss of around $149 thousand
In the interest of fairness, we should point out that CLDS are trying to get themselves out of the mess. At least that’s what they say.
Back in September, they announced that they have secured a $2 million stock purchase agreement with an entity called Kodiak Capital Group, LLC. Unfortunately, the press release failed to give us any more details, but CLDS said that they’re going to publish a registration statement with the SEC which will clear everything up. Two and a half months later, we’re still waiting for the document.
All in all, CLDS have yet to persuade us that they are able to set up any sort of operations and raise any sort of value for their shareholders. So far, the stock has moved only because of the paid promotions and the overall results have been disastrous. That’s why, you should be extremely careful when weighing the risks of a potential investment.
Other OTC stocks that experienced some increased volume yesterday include Marani Brands, Inc. (OTCMKTS:MRIB) who jumped up by no less than 34% and stopped at $0.0165 and Chromadex Corp (OTCMKTS:CDXC) who added nearly 12% once again fueled by an optimistic article on Seeking Alpha.
