Roadships Hldg Inc (OTCMKTS:RDSH) Sets its Sails for Mobile App Success
If you open Roadships Hldg Inc (OTCMKTS:RDSH)’s latest 10-K and scroll down to Page 19, you’ll read that the company’s “management has extensive experience in optimizing operations, squeezing-out cost overruns, and maximizing profits beyond industry averages.” Sounds good, but if you do a little bit of research, you’ll find absolutely nothing to suggest that this is the case.
RDSH entered the freight shipping and transportation business back in 2009 and while the plan sounded exciting enough at the beginning, it’s fair to say that the company has failed rather miserably at making any sort of impact on the sector. In fact, RDSH is having some serious problems keeping up with smaller things like its reporting obligations. The aforementioned 10-K covers the twelve months ended December 31, 2013, and it’s the latest report to come out of the company headquarters.
This, as you might have calculated already, means that the figures in it are now fifteen months old. They look like this:
- total current assets: $196 in cash
- current liabilities: $57,699
- NO revenue since inception
- yearly net loss: $27,070,637
In light of all this, it’s no surprise that the stock was virtually dormant not that long ago. RDSH held its triple-zero status for quite a while and during the five full sessions last week, it registered less than $10 thousand in dollar volume.
Things change quite quickly in Pennyland, however, and the performance over the last two days proves the point rather well. RDSH sprang to life on Monday and it emerged above the $0.001 mark for the first time since June 2013. Yesterday, it shot up and gained 236%, finishing the day at $0.0037 on a dollar volume of more than $250 thousand.
The reason for this is RDSH‘s venture into the technology industry. This is not actually a new development. A couple of months ago, the company established a division called Polybia Studios which will work on a mobile application for the paperless exchange of business contacts. This didn’t really affect the stock that much, but on Monday, RDSH‘s management team proudly announced that they have signed an agreement for the acquisition of a 90% stake in Click Evidence Inc. – a company that works out of a residential house and wants to make the images of the Internet more trustworthy.
The deal has yet to be closed. That is supposed to happen before the end of May, but nevertheless, people around the discussion boards are already predicting that the new subsidiary will propel RDSH‘s market cap into the billions.
There’s nothing wrong with being excited about the news, but potential investors should probably bear in mind that nobody can say what Click Evidence’s financial situation is. This, in turn, means that if you are pouring money into the stock, you are trusting it with RDSH‘s management team and its “extensive experience” from the first paragraph.
And some people might find this difficult. RDSH has been run by Micheal Nugent and Robert McClelland (both from Australia) for quite a while and it’s fair to say that there’s a lot of controversy around these two individuals. The same dynamic duo has been involved with Novagen Ingenium Inc (OTCMKTS:NOVZ), for example, and it’s fair to say that this particular OTC company is not doing too well.
Prior to this, Mr. Nugent and Mr. McClelland ran another business called Cycclone Magnetic Engines Inc and tried to convince investors that they have come up with an engine that needs no fuel to operate. A few Aussie media outlets had something to say about the miraculous invention, but, perhaps more importantly, the Australian Securities & Investments Commission wasn’t impressed with the bombastic claims made by Mr. Nugent and Mr. McClelland.
