Quadrant4 Systems, Inc. (OTCMKTS:QFOR) Goes for the Win

Over the weekend, Quadrant4 Systems, Inc. (OTCMKTS:QFOR) exhibited extraordinary strength, almost matching Friday’s buying volumes. QFOR has not been promoted with a new email or a PR, but the momentum from last week carries over, as there is now awareness of the company’s qualities. QFOR added more than 21% on Monday to reach $1.38 on buying volumes of $1.29 million.

Investors’ forums still show a liking to this ticker, but express discontent that QFOR should hold so much authorized shares- 10 billion shares of preferred stock at $0.001 par value and 5 billion shares of common stock at $0.001 par value. There is also fear that the dilution option would be activated soon, as the company pays high rates on its debt, and the end of the year would require further payments. Sadly, QFOR is still not making enough through its business in online infrastructure to provide its needs.

QFOR is in a somehow niche market, building a system that would organize health service payments and compensation. But until deals and clients roll out, there is little that this company can do but wait it out on a credit line and equity financing. On top of all, QFOR now faces penalty payments and interests for breaching a $500,00 financing agreement. So this stock is in top shape only on the surface- and as the buying and the climb continue, the position is becoming shakier.

In a special report, QFOR has positive information to share, planning to add between 2.5 and 3.5 million new accounts to its system in 2014. This growth would be much bigger than the additional clients for established medical payment systems. Investors will have to wait and see how all of this reflects in the bottom line.

Virtual Piggy, Inc. (OTCBB:VPIG), a ticker we use for comparison, is sinking further, unfortunately. The shares sank significantly in the past days, toward $1.10, threatening to bottom out below the dollar. VPIG has a solid online payment business, but it has tested the patience of investors for a while.

DubLi, Inc. (OTCMKTS:DUBL) looks like an opportunity at 8 cents, being another payment infrastructure company. But the ticker has been stuck at those prices for a while.

Now, QFOR may be in for a more dramatic end of the year. If you still believe there is juice in this ticker and a possibility to keep higher prices, mark that QFOR is at all-time peak levels, and the unknown ground covered may prove rough, especially for a ticker that grew more than five times in four months.