Promoters Bury IceWeb, Inc. (OTC:IWEB)
On Thursday IceWeb, Inc. (OTC:IWEB) opened with a gap up and had a relatively strong day, closing 27% up, aided by promotional pumps for the stock sent by Darth Trader, a.k.a. the Stock Psycho. Sadly, on Friday the price took a face-plant, nearly wiping out all gains made over the previous session.
The reason for the abrupt withdrawal may have been the fact that after the Stock Psycho said IWEB was his ‘ultimate growth’ pick on Thursday morning, disclosing a compensation of $165 thousand, the next email he sent to his subscribers only 24 hours later basically said “It’s been a good run, boys and girls, but a new pick is coming, no more touts for this one”. This was more or less a clear signal for those who love to play the pumps even though they understand the artificial inflation of price they create.
Yesterday’s volume action was less intense than Thursday’s but it was still well above the average, with people scuttling out of IWEB‘s ship and pushing the price down immediately after the open.
Leaving the pumping activity around the company aside and looking at their financial situation, things are not looking a lot prettier. The last available report of IWEB is for their first fiscal quarter ended December 2012 and it contains the following:
- $81 thousand in cash
- $3.4 million in liabilities
- $313 thousand in quarterly revenue
- $791 thousand in quarterly net loss
The company logged net loss of over $6 million in 2012 and their first fiscal quarter post their 10-K shows neither signs of significantly increasing revenues, nor any efficient measures to contain expenses. The company came out with a press release on Friday, announcing another sale of its storage solution but no numbers were quoted.
The Stock Psycho ran other short-lived pumps whose outcome was rather unpleasant. On March 7, the Stock Psycho promoted Titan Energy Worldwide, Inc. (PINK:TEWI) that ran for a single day before coming down hard, obliterating profit made during the short run. The chart on the right speaks for itself.
Investors are advised to do their own due diligence and research companies on their own before making an investment in any stock.
