Digital Caddies Inc (OTCMKTS:CADY) Climbs on News
Digital Caddies Inc (OTCMKTS:CADY) isn’t the most active penny stock company on the PR front, but they do like to issue regular updates (quite positive ones at that).
Their Players Network service has been around for more than six months and, judging by the recent announcements, CADY are working hard on improving it. On March 4, they said that the network is performing beyond their expectations and since then, they have signed no less than four additional agreements which should give revenues a boost. On April 4, they announced a $2.7 million financing deal that should take care of any capital problems.
It should also be noted that, unlike many penny stock companies that issue similarly optimistic press releases, CADY actually have some relatively solid figures in its balance sheet. The latest quarterly report covers the period ended January 31, 2014 and it shows that back then the company had:
- cash: $796 thousand
- current assets: $1.3 million
- current liabilities: $181 thousand
- quarterly revenues: $168 thousand
- quarterly net loss: $1.3 million
There is room for improvement, but the figures above are certainly a lot more decent than the ones presented by other penny stocks. All in all, CADY looks like one of the few OTC-listed companies that actually have some potential.
And yet, judging by the chart at the beginning of the article, traders don’t seem too interested. There was some movement in December, but it was mostly in the wrong direction. The negligible volumes over the following months suggest that nobody was paying attention as the ticker regained some of the lost ground and although it made an impressive 33% jump yesterday, about thirty minutes after today’s opening bell, it’s slipping once again. So, what could be the reason for this?
The promoters have certainly played their part. As you can see from our database, we’ve received more than sixty emails over the years and although with their help, CADY managed to make a few interesting jumps, a consistent performance has remained nothing more than a distant dream.
The latest promotion was carried out by Stock Hideout and Stock Roach and took place on March 17. It didn’t really have that much of an effect on the ticker, but bearing in mind the possibility of future paid pumps might not be a bad call.
Keeping a close eye on the share structure is also advisable. Without a doubt, one of the highlights in CADY‘s balance sheet is the lack of debt. This was achieved because the management team opted to raise capital through private placements rather than notes or debentures. Most of the stock that is being issued every now and then is restricted and it’s not priced at ridiculously low levels. Even so, if CADY fail to turn profitable, the dilution will, sooner or later, hit the shareholders.
A lot of due diligence and careful consideration of all the risks is, as always, absolutely essential.
