Q Lotus Holdings, Inc. (OTCBB:QLTS) With An Advertisement Campaign
We can imagine that the job of a person who has to prepare stock promotional emails is probably not the best in the world. Yes, the compensations received for the campaigns are, more often than not, quite good, but the people who write the emails are actually faced with a daunting task. They need to draw your attention to a company that most likely has no operations, is in a dreadful financial state and has not generated even a dime in revenue for years. And they need to do it in such a way that after you finish reading through their overly excited narrative, you start considering the promoted venture as a great investment option. Despite all this the pumpers do manage to come up with long emails where the optimism is literally spurring out of every metaphor. Information Solutions Group’s alerts, however, are a little bit different and the email that they sent us about Q Lotus Holdings, Inc. (OTCBB:QLTS) is a classic case in point.
It’s actually really short – a few sentences, a couple of links and a Good Luck wish. Truth be told, though, we can’t blame them. There really is nothing that you can say about QLTS that will make them look as an even remotely attractive investment opportunity. For one, the business descriptions available on the Internet are rather confusing. QLTS are supposed to be a company that specializes in providing financial services (no mention as to exactly what sort of services) and acquisitions of growing companies with emphasis on the finance, real estate and mining sectors. The fact that they haven’t issued any press releases in while made Information Solutions Group’s job even harder.
While there’s no new announcements around QLTS we did manage to find a lot of old press releases in which they talk about signing letters of intent and memorandums of understanding about the acquisitions of various companies. And we can say that they’re not all works of fiction, as well. They have all been filed as 8-K forms and the number of such documents to be found among QLTS‘ filings is absolutely astonishing.
The results of all the letters and memorandums can be seen in the latest quarterly report which contains the following financials:
- cash: $25 thousand
- current assets: $28 thousand
- current liabilities: $3.5 million
- revenue since inception
- quarterly net loss: $608 thousand
- accumulated deficit: $4.6 million
In all fairness, these figures might not be 100% accurate when describing QLTS‘ current financial situation and there are a couple of reasons for that. The first of which is pretty obvious – the report covers the period before December 31, 2012, which means that the information in it is six months old. Judging by the speed at which QLTS issue convertible notes to known toxic financing entities such as Asher Enterprises, they might have borrowed some money.
The second reason, however, is not to be found in the report. It’s actually located in the fine print of Information Solutions Group’s email. In there, you will see that QLTS themselves paid $15 thousand for the awareness campaign and judging by the number of overly optimistic opinions on iHub, the email might not be the only way through which the stock is being touted. What does that mean?
Well, nobody knows for sure. It might be just an effort made by the company to draw some more attention to their stock or someone could have different things in mind. Whatever the motives for this move, you should have in mind that QLTS haven’t released any current financial information for quite a while now. You should also bear in mind that there’s little to suggest that they have started the actual revenue-generation in the meantime and we reckon that considering QLTS‘ past performance under the pressure of promotion is also worth keeping in mind before jumping in. As you can see from the chart at the beginning of the article, the last campaign was carried out in May 2011 and a quick look at the historical prices reveals that back then the ticker lost around 70% of its value in a matter of one month. The total amount lost since the first promotion equates to around 99%. That, you would agree, is quite a lot even in Pennyland.
