PennyStockLocks Are Aiming High With IceWEB, Inc. (OTC:IWEB)

Do you remember the time when all the important documents were printed or written on pieces of paper, when all the memories of family reunions were kept in photo albums and when music and video were stored on those black magnetic tapes? We don’t remember it, either. IceWEB, Inc. (OTC:IWEB) have forgotten the good old days as well and they market themselves as leaders in digital storage market. Let’s set aside the “leaders” part for a moment and see what they really do.

We all know that computers crash from time to time. We are also familiar with the eye-popping anger that engulfs us when they freeze. Some of us might have also experienced the dread of losing valuable information. IWEB say that they can’t stop the computers from going south, but they can prevent data loss with their backup storage devices. Of course, they are not the only ones that sell such products, but they claim that theirs offer the most bang for their clients’ buck. That sounds quite good. Almost too good.

We decided to put their words to the test and started comparing prices and features. We did a quick look-around and we found that indeed, IWEB‘s products are relatively cheap, especially when the specifications are taken into account. That’s a good thing, isn’t it?

If you are the one looking for a place to store your family photos, then, perhaps the low price will indeed be tempting, and sales figures confirm that. If you want to sell these products, however, you will need to bear in mind that there is some pretty complex technology in these devices. This technology is expensive and IWEB‘s products are not, which means that they are operating at a loss. To get a better understanding of just how much of a mess they are in, here’s a round-up of their financial statement according to their latest report:

• cash: $269 thousand
• current liabilities: $4.1 million
• sales revenue: $2.6 million
• operating expenses: $5 million
• net loss for the last year: $6.5 million

You should also bear in mind that although, IWEB are situated in a relatively small niche of the IT industry, it’s still full of big names and established companies with hoards of brand-loyal customers. This means that it’s always going to be a tall order for a small company to make any sort of impact, and we are pretty confident that cheap prices alone aren’t going to be enough.

History shows that paid promotions have not done them any favors, either. They have been featured in quite a few emails over the last months, and when we take a look at the chart we can see how badly it all ended up.

A number of promoters have taken them on and now it’s PennyStockLocks.com’s turn. They are always eager to point out that they have financial experts and analysts who are able to pinpoint what the performance of various stocks is going to be. Back in December, the same experts were sure that TENGUY WORLD INTL (PINK:TGWI) is going to yield some massive profits. You can see from the chart how wrong their forecasts were.

The IT industry has been exploding over the past years and, by the looks of things, only a meteorite or probably an alien invasion could stop the growth. That is perhaps why it’s so attractive to small companies. In order to survive on this market you will need a business strategy that consists of more than just selling the products at a huge loss.