Speed Commerce Inc. (NASDAQ:SPDC) Breaks Out of the Trading Range

[[tagnumber 0]]Yesterday, shares of Speed Commerce Inc. (NASDAQ:SPDC) continued the rally, closing the session above the higher end of the trading range. The company just recently changed the terms of its credit facility to secure more cash as its operations remain unprofitable and keep destrying shareholder value.[[tagnumber 1]] [[tagnumber 2]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 2]]SPDC gained 8.64% in yesterday‘s session and closed at $0.239 for a share. The trading volume did not grow while the stock broke out of the Bollinger bands range and as technical indicators are just crossing the critical levels the chart looks bullish for today as well.[[tagnumber 1]] [[tagnumber 2]]The company provides e–commerce service to retailers and manufacturers, yet its operations have brought only losses so far. Working capital was negative in the second quarter and SPDC had to move its stock from the NASDAQ Global Market to the NASDAQ Stock Market as the share price stayed long enough below the minimal $1 quote.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 10]]SPDC has such low market value also because the largest part of its assets are goodwill and other intangibles, while there was also long–term debt of over $95 million at the end of the second quarter. Last week, the company announced the seventh amendment to its credit agreement which provided additional $3 million in term loan, and the negative operating cash flows suggest that short–term loans are currently the main source of cash the company relies upon.[[tagnumber 1]] [[tagnumber 2]]SPDC latest financial report reveals also that the Board of Directors is exploring alternatives to enhance shareholder value, a sale of the company being one of the possible ways. That process has began in April and since then SPDC stock has lost half of its value. If no buyer is found any soon, the stock seems bound to continue the downtrend after the current rally.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]]