EQ Labs Inc (OTCMKTS:EQLB) Takes a Rest
During the first half of 2015, some people bought a total of 46 million shares of EQ Labs Inc (OTCMKTS:EQLB) common stock at $0.0013 apiece. The ticker closed yesterday’s session at $0.0047 per share and the volume was quite significant which means that investors are now wondering whether the people in question are willing to hold on tight and wait for continued growth, or whether they’ll be in a hurry to get rid of their cheap shares and walk away with the profits.
Up until a couple of months ago, EQLB wasn’t such an attractive proposition. The company headquarters, for example, was a nice residential house, there was no revenue, the financial reports were an absolute mess, and the stock was extremely illiquid. Things might be a little bit different at the moment.
The report for the second quarter of the year looks like this:
- cash: $2,605
- current assets: $242,305
- current liabilities: $42,933
- quarterly revenue: $125,510
- net profit: $62,361
The balance sheet is still pretty hideous, but during the first six months, EQLB managed to log some revenues and they even came out with a positive bottom line. Apparently, selling “obsolete inventory” (a direct quote from the financial report) gives you some great profit margins. Whatever they’re selling, they’ll keep their shareholders happy if they continue to bring in more and more revenues and profits.
And they reckon that they can do it by doing business with famous people on board like Timbaland. The management team failed to mention any details around the new endorsement deal, but as we mentioned in our previous articles, investors didn’t see this as too much of a problem and they dragged the ticker to almost half a penny per share. Yesterday, it met some resistance and it failed to better the result from Tuesday’s session, but despite this, a lot of investors still seem pretty confident about EQLB‘s future. But aren’t they a bit too confident?
Well, the ticker might experience a setback if the people from our first paragraph decide to cash in. And they might not be the only ones who can profit from EQLB‘s current market value. The number of issued and outstanding shares grew by about 257 million during the first half of the year and, as you might have calculated already, 211 million of them are unaccounted for.
Does this mean that EQLB is about to be crushed? Not necessarily. Bearing in mind that you don’t know where a quarter of the outstanding stock has gone, however, probably isn’t such a bad call.
