Something Strange is Happening to Spindle Inc (OTCMKTS:SPDL)
Yesterday, a contributor on Seeking Alpha published an article and advised Mark Zuckerburg that he should consider the options of Facebook Inc (NASDAQ:FB) acquiring a relatively new small cap company called Spindle Inc (OTCMKTS:SPDL). Predictably, the ticker jumped by nearly 20%, thus solidifying the stock’s upward trend that was sparked a couple of days ago when another article on Seeking Alpha spoke about SPDL‘s “massive growth potential“.
You can have a look at the analyses done by the two contributors (who are only known by their nicknames) and decide for yourself if you want to trust them or not, but we must say that Spindle does seem like a company that has something going for it.
For one, although they started the business of providing online payment solutions just three years ago, they already have their products on the market and they do seem to have a relatively steady stream of revenues. Furthermore, the financial statement for the second quarter of 2013 looks a lot better compared to the ones offered by many other small cap enterprises. Here’s a summary of the figures found in the 10-Q:
- cash: $432 thousand
- current assets: $1.1 million
- current liabilities: $457 thousand
- quarterly revenue: $327 thousand
- quarterly net loss: $861 thousand
It’s obvious that they still have some way to go and it’s clear that profitability is nowhere in sight, but even so, we must say that, if progress over the next couple of years is as strong as the one seen over the first three, we might have a very interesting stock on our hands. That said, there can be no guarantee that this will indeed happen and while there is around $700 thousand in working capital, they still say that it will be insufficient to stick to their business plan.
Furthermore, we read in the filing that there is a pending lawsuit against SPDL and some of its directors and officers which could land a blow both on the company’s financial situation and on their credibility. In addition to this, we’re not sure if FB are ready to cough up more than $37 million (the market cap at yesterday’s close) in order to acquire such a small company.
It remains to be seen whether SPDL will continue to impress us with their steady growth and we’ll be sure to keep an eye on the news in case FB do indeed decide to add a micro cap online payment solutions provider to their portfolio. In the meantime, however, we have some other things to worry about.
If you have been following our articles closely, you know that when the pumpers decide to promote a stock, they often employ landing pages and most of the websites are registered under domain names that are comprised of the ticker symbol and the word “report”. The examples are numerous – the promotions for Cloud Security Corp (OTCBB:CLDS), Arch Therapeutics Inc (OTCBB:ARTH), Inscor Inc (OTCMKTS:IOGA) and Virtual Sourcing, In (OTCMKTS:PGCX) all followed the same pattern.
We can see something similar with SPDL. A landing page was set up and it promises that as soon as we give out our email address, we will be sent a “special report” on the ticker. Unfortunately, we still haven’t received anything that resembles a report and we don’t really know what it contains. Message board users that have supposedly seen it say that it is aimed at bashing SPDL rather than promoting it, but, once again, we can’t be sure. As far as we can work out, the landing page (and, most likely, the report) was prepared by an entity called Feline Stocks. We don’t really know all that much about them, either, since their website is not operational and the whole thing takes on an air of mystery that warrants a lot of extra caution. Make sure you do the proper amount of due diligence before putting any money in SPDL.
