Cloudcommerce Inc. (OTCMKTS:CLWD) Gets Pumped Sky High
Cloudcommerce Inc. (OTCMKTS:CLWD) caught a promoters’ boost yesterday and jumped sky-high – so what will happen next?
One thing is certain – the pumpers did their job very well, but that is to be expected. Reportedly, the promoters that did the touting are the ones behind notorious names such as TheWolfOfPennyStocks and EpicStockPicks – so that’s nothing out of the ordinary.
Then again, one glance at the broader picture here shows nothing unusual, as far as OTC Markets pumps are concerned. All of the ingredients for a textbook pump-job are present.
What we have here is, without a doubt, an obscure mediocre company, which fits the description of the pumpers’ usual targets perfectly. A quick check reveals that CLWD stock saw little to no trading activity in the last few months, and as for the company’s financial state, well… We encourage you to see for yourself what that is the last time CLWD reported:
- Cash – $79 thousand
- Total current assets – $421 thousand
- Total current liabilities – $2.1 million
- Revenues – $737 thousand
- Net loss – $6 million
The only detail that doesn’t fit in this picture of idle mediocrity in this row of numbers is the fact that, unlike most other companies in similar circumstances, CLWD actually seems to be making revenues!
That fact is most certainly unexpected – unlike the fact that it seems to be failing horribly at making ends meet. True, most of its loss has been recorded as “loss on derivative liability”, but the fact remains that about $600 thousand wort of it is actual net cash used in operating activities.
Still, that shortcomings are as noting in comparison with the glaring red flag that comes next. Namely, the fact that CLWD has $1.5 MILLION worth of convertible notes in one form or another, and they’re all toxic. One of the latest batches can be turned into common stock at “a conversion price of $0.004”. Yes, that’s approximately ten times lower than the stock’s current market price. What more needs to be said on the matter?
Investors should take all these factors into consideration and act accordingly.
