Quadrant4 Systems Corp. (PINK:QFOR) Gets a Volley of Small Pumps

Yesterday promoters launched a fairly large round of pump emails targeting Quadrant4 Systems Corp. (PINK:QFOR). The promotion have not taken a stab at the company for almost a full year before this new push.

The company line of business is computing solutions ranging from engineering to cloud services. QFOR recently announced its reorganization into four operating subsidiaries that are supposed to develop into independently branded entities. The latest press release from the company, concerning the merger with Momentum Mobile, a mobile application developer, also coincided with the date of the new pump emails.

The new pumps have been compensated with $15 thousand from Compass Capital, disclosed in the email disclaimers. Promoters seem to find great injustice in the fact that QFOR is trading at $0.08 per share, touting the 800 hundreds of employees the company allegedly has and its sizable revenues. Even though the company’s OTCMarkets page reports the number of employees to be 750, that was as of August 2011. The most current official filing containing employee figures is the yearly report for 2011, made public in July 2012, listing 350 employees as of June 2012, including management. The company later announced an acquisition that increased employees by an unknown amount.

As for QFOR‘s millions of revenues, the filings paint a better picture. The latest financial report available is a 10-Q from Q3 of 2012 and it contains the following:

• $9 thousand in cash
• $7.8 million current liabilities
• $6.5 million in quarterly revenue
• $914 thousand in quarterly net loss

It turns out that despite the respectable revenue the company manages to rake in, the bottom line for the business has been a net loss for quite some time. Loss for 2010 was $2.2 million. In 2011 the company’s revenue increased almost 100% but again, QFOR did not manage to record a profitable year despite the huge increase. For the first nine months of 2012 alone net loss is already stacked to $2.6 million.

Considering the relatively small budget set aside for the promotion, it doesn’t look too likely to offer a chance even to the greedier among traders to turn a sizable profit. Do your own due diligence and don’t trade on paid recommendations you receive in your inbox.