Paid, Inc. (OTCBB:PAYD)’s Uptrend Comes To An End
For the past two weeks the stock of Paid, Inc. (OTCBB:PAYD) was making a steep climb up the chart. Starting from $0.08 it almost doubled in price when last Thursday briefly reached $0.145. Maybe such heights prompted investors to cash in their holdings because on Friday the company suffered a setback and slid 16% to close at $0.11. Traded volume spiked to levels never seen so far this year when 2.3 million shares changed owners.
Paid for a long time were focused on providing brand-related services to clients in the entertainment, sports and collectible industries. But with the start of 2013 they decided to make a change in direction and concentrate only on developing their intellectual property which consists mostly of patents for online shipping calculators. They have the unique feature of using a zip code as a destination location indicator and are capable of calculating transportaion costs across multiple shipping carriers. PAYD transferred all of their other business functions to MCN Interactive, LLC d/b/a MusicCityNetworks after entering into a partnership agreement.
Such a drastic change might have been necessary, at least according to their financial statements. PAYD finished the first quarter of 2013 with the following results:
- $1.1 million cash
- $2.7 million total current assets
- $2.3 million total current liabilities
- $932 thousand revenue
- $200 thousand net loss
Although the numbers aren’t that discouraging with a manageable net loss, positive working capital and considerable cash funds the company will have to further cut on its expenses. PAYD have an accumulated deficit amounting to the whopping $51 million and have almost burned through all of the 350 million authorized shares, currently sitting on 328 million issued.
Last Friday NanoTech Entertainment, Inc. (OTCMKTS:NTEK) continued spiraling downwards for a forth day in a row. They tried to stem the bleeding with some positive PR news but to no avails. International Stem Cell Corp. (OTCMKTS:ISCO) also brought despair to many investors when the company wiped 40% of its value in a single day.
