Quantum Int. Corp (OTCMKTS:QUAN) Heading South
After a couple of glorious trading sessions on May 24 and May 28 when Quantum Int. Corp (OTCMKTS:QUAN) blasted all the way to $0.50 per share, the ticker started sliding down heavily and in a matter of two days QUAN lost around 50% settling down at $0.26.
Even at this point QUAN‘s market cap hovers around $10 million and you have to ask yourself: “What do I get for that sort of money?”. We opened their latest financial statement once again to find out. Here’s the summary of the most important figures as of March 31:
- cash: $13 thousand
- current assets: $13 thousand
- current liabilities: $1.4 million
- no revenue since reentering the development stage
- quarterly net loss: $281 thousand
We expected to receive some promotional emails about QUAN when we saw that things seem to be moving, but we turned out to be wrong. In fact, the whole excitement is created solely through a slurry of press releases coming out of QUAN‘s HQ every couple of days. In them we read that the company is working hard on finally launching their iPad protective casing that will somehow increase the storage capacity, extend the battery life and do a host of other things that will make the experience of owning a tablet a lot more pleasant.
If we have to be fastidious, we would probably say that QUAN don’t provide us with a launch date. We could also mention that when we looked for some information about their partner in the joint venture, A-Plus Technologies, we couldn’t even find a website, which, for a company developing exciting accessories for the world’s best selling tablet, is rather strange. We could also mention that the announcements are full of far-fetched comparisons between QUAN and some solid publicly traded ventures like iRobot Corporation (NASDAQ:IRBT) who spend tens of millions of dollars on Research & Development alone.
But we’ll restrain ourselves from doing all that because, quite simply, when you have in mind QUAN‘s current financial situation, you will see that the all-in-one iPad protective case won’t see the light of day any time soon. Sure, they could borrow some money but what will happen after that? If history is to be believed, they will convert the notes into common shares at $0.01 or $0.02 meaning that the note holders will have ample opportunity to profit while the regular shareholders’ investments will be crushed by dilution. All in all, if QUAN is to succeed, the management team will need to perform miracles. And we’re not sure if they can do that.
If you have a look through our previous article, you will see that the person who is currently at the helm of QUAN is called Robert Federowicz. We mentioned his involvement with First Titan Corp (OTCBB:FTTN) and OBJ Enterprises, Inc. f/k/a Obscene Jeans Corp. (OTCBB:OBJE), we pointed out the extensive promotional history that the two ventures have and the consequent dismal stock performance. In addition to FTTN and OBJE, he is also the CEO of another ticker we know all too well – Aristocrat Group Corp (OTCMKTS:ASCC). Their stock got pumped a couple of times during the last few months and it’s pretty clear from the chart on the right, that things have not gone according to plan. He took control over ASCC just months before the promotion and his predecessor is also a well-known name in Pennyland – Cindy Morrissey.
Ms. Morrissey has been involved in numerous publicly traded small cap companies, the most famous of which is probably Emerging Health Sol. (OTCMKTS:EHSI) (whose stock got suspended by the SEC in 2011) and she was working there alongside Ms. Kathleen Delaney, the same person that is listed on the OTC Markets’ website as QUAN‘s Legal Counsel. While we were doing some research on EHSI, we also stumbled upon this press release where Mr. Federowicz’s name is mentioned as well.
But let’s get back to Ms. Delaney. EHSI and QUAN are not the only ventures that she’s been involved in. She also appears to be the CEO of Gulf Alternative Ene (OTCMKTS:GAEC) whose shares also got suspended by the SEC back in 2009.
We’re starting to get the feeling that Mr. Federowicz, Ms. Morrissey and Ms. Delaney are quite close to each other and they have been working together for years. Whether their efforts are aimed at raising the value of their ventures’ shareholders is another matter, though. In any case, if you are considering an investment in QUAN, we would like to urge you to perform a thorough research and weigh the risks carefully before jumping in.
