Monster Trading Alerts Gives IceWEB, Inc. (OTC:IWEB) a Boost

Yesterday IceWEB, Inc. (OTC:IWEB) caught a nice boost in price and closed 34% up on unprecedented volume. The pumps ran by a couple of promoters seem to have kicked in as over 12 million IWEB shares changed hands by the closing bell.

The major parties promoting IWEB stock were Hot Stock Ace Publisher and Monster Trading Alerts, compensated respectively $50 thousand and $55 thousand, bringing the cumulative promotional budget for the stock to $110 thousand. It’s probably worth noting that towards the end of the previous trading session one of the promoters pretty much waved IWEB goodbye and announced a new pick coming up.

The significant surge can also be attributed to a press release from the company announcing a new customer for their IceBOX secure private cloud solution. Perhaps a bit of a deflating detail is that the new customer is a faith-based non-profit organization. On a more positive note, the company has recently received VMWare certification for one of its products. Still the financials listed in IWEB‘s latest report, a yearly 10-K as its fiscal year ends September, don’t paint a very optimistic picture:

• $269 thousand in cash
• $4.1 million in current liabilities
• $2.6 million in yearly revenues
• $6.4 million in yearly net loss

The pattern of sizable revenue eaten up by operating expenses is repeated from 2011. IWEB logged expenses representing 190+% of revenues for both years. Considering that IWEB claims to be currently actively attracting new customers, with its first two major private cloud deals reportedly struck within the last 10 days, this situation may change but this is yet to happen. The company also has outstanding warrants for a little over 38 million common shares that have full-ratchet anti-dilution provisions attached to them.

Promoters Monster Trading Alerts who ran the recent $55 thousand promo on IWEB previously pumped other companies that ended up in disaster. They promoted Dethrone Royalty Holdings (OTC:DRHC) on January 14, once again pocketing $55 thousand. This one happened to be an immediate disaster, as DRHC crashed on the very next day and is currently down about 60% from the date of the pump.

Investors are advised to watch out around stocks targeted by paid promotions. Do your own due diligence and research and don’t trade on paid advertisements.