ProText Mobility, Inc. (OTCMKTS:TXTM) With A Strong Finish For the Week

During Friday’s market things began calm and without much movement in either direction. But come noon the stock exploded as investors rushed in. In the end the climb stopped after adding 62% to stop at $0.0013. The 177 million shares are quite a number even at these lower price levels.

TXTM began as a software developer for PCs but they switched to the mobile industry after its boom in the recent years. Their products are primarily designed for the Android and Blackberry OS providing parents and corporations with means to help manage the mobile activities of their children or employees. Despite having real products with undeniable potential the company has been unable to generate sufficient revenues from their sales in an amount necessary to meet its needs. This becomes painfully obvious if you even take a glance at their financils. According to the latest report they finished the period ending March 31 with the following results: 

• $1632 cash
• $4332 total assets
• $4.7 million total liabilities
• $265 revenues for the period
• $337 thousand net loss

It is quite evident that the company has been relying primarily on equity and debt transactions. Just for the first quarter of 2013 they doubled the amount of their issued common stock bring the total up to 600 million out of the 750 million authorized. 36 million out of them were for employee compensation. Another red flag for the company is the ongoing suit filed against them by a former employee alleging various claims. Also they should notify OTCmarkets to update the name of the official site of TXTM because the one listed leads to some page in Japanese.

The company offers many opportunities for profits for the experienced traders who are able to play its volatility. But if you are considering any long-term investment it is better to skip the stock entirely.