Quadrant 4 Systems Corp (OTCMKTS:QFOR) Closes The Week Red
After a peak in trading in the beginning of December, the stock of Quadrant 4 Systems Corp (OTCMKTS:QFOR) dropped in price and the ticker continued to move through the month swaying in both directions.
While it managed to stay above the $1 mark, the company stock wasn’t traded a lot and volumes were kept below QFOR‘s average of 380 thousand. Despite the regular optimistic news coming from the company, however, QFOR closed the past week in the red.
The ticker dropped some 15.15% in Friday, after the company announced that it has issued 1.7 million shares of common stock to certain holders of warrants in order to cover some of its debt. This, however, wasn’t to the liking of many and the stock dropped below the $1 mark and QFOR closed the session at $0.857 with 236 thousand shares that switched hands, generating $230 thousand in dollar volume.
Indeed, the company has quite some debt to cover and the cash on hand QFOR reported in the third quarter of the year was really low.
- cash: $47 thousand
- current assets: $6.6 million
- total assets: $28.5 million
- current liabilities: $11.8 million
- total liabilities: $20.3 million
- revenues: $9.1 million
- net loss: $836 thousand
It also seems that QFOR will continue to issue stock, which will surely dilute their stock further. The ticker might drop even lower in price if that happens and QFOR remains a volatile stock depending on the news.
The company registered quite a lot in revenues in the third quarter of 2013 and Mr. Dhru Desai, Chairman and CFO of QFOR stated that their expectations for 2014 are even bigger. This, however, is for time to tell.
Until that time comes QFOR is a risky investment choice, so be sure to do a lot of due diligence and weigh out the risks.
It seems that the medical marijuana craze has come to an end for now as Hemp, Inc. (OTCMKTS:HEMP) also closed the past week in the red with a 16% drop. Medical Marijuana Inc (OTCMKTS:MJNA) took a steeper dive and lost 20% of its price on a volume that generated $9.5 million in trade value.
