On4 Communications Inc (OTCMKTS:ONCI) Crashes Right Back Down

tags: ONCI

On4 Communications Inc (OTCMKTS:ONCI) has been bouncing up and down the charts ever since its latest pump campaign began – and Friday was certainly not kind to the ticker.

The end of last week’s trading saw ONCE once more return to triple zero land on the heaviest dollar volume the company has seen this month. And how can this not be the case?

After all, we’re talking about a company, who had been touted by the infamous Wolf Of Penny Stocks in the not so distant. Once said promoter was done with the ticker, other huge names such as BeatPennyStocks, PennyPicks and DamnGoodPennyPicks had a go at ONCI as well, with varying degrees of success. In most cases, their efforts bore some fruit, but unfortunately, said results were short-lived, even by the standards of OTC Markets pumps.

The reason fro that becomes fairly obvious once you take the time to throw a cursory glance at ONCI‘s filings. Sure, ONCI fancies itself “a holdings company with an aggressive focus of acquiring proven and profitable businesses, especially those businesses operating in the $1.7 trillion U.S. healthcare industry”. However, for all its boastful words, its actual achievements to date are laughable:

• cash and total assets – $7.5 thousand
• total current liabilities – $2.6 million
• ZERO revenues
• net loss – $87 thousand

These numbers sort of speak for themselves, disproving anything positive that the pumpers may have had to say about the company. Still, it is advisory to read further into the report, because there are quite a few more details that investors should note when considering ONCI.

Like the fact that it has had to issue about 170 MILLION shares of commons stock as a result of conversions of debt since the last time it reported. This means that as of now, its shares outstanding should be about 540 MILLION. And, for anyone who didn’t see that coming – no, it’s not like there’s a chance of the conversions coming to an abrupt end now. As far as we know, ONCI can have up to $304 thousand in convertible notes payable at the moment – and that’s if it hasn’t skipped on filing any reports documenting any more debt.

With all of this in mind, it should be pretty obvious why the ticker could be headed to illiquid obscurity before too long.