The Unconventional Pump for Cloud Star Corp (OTCBB:CLDS) Continues
The promotion for Cloud Star Corp (OTCBB:CLDS) is quite different from most of the pumps that we deal with around here on a daily basis. Usually, when a penny stock gets promoted, there is a lot of emails flying around convincing inexperienced investors that this or that ticker has a great product, an expert management team and/or huge potential. Sometimes we see hard-mailing campaigns where you receive a brochure of some kind full of colorful pictures and complicated diagrams, of course, garnished with the same promises of wealth and fortune that you hear from the newsletters. There is one more method – paid users flooding the message boards with all sorts of optimistic opinions whose aim is exactly the same – to make you think that the promoted company is a really good investment option.
The case of CLDS is very different, indeed. There were some emails, but the activity is nowhere near as intense as what we’re used to. Although we spent quite a lot of time searching for one, we couldn’t find any traces of pumping through the snail mail, and the investors forums seem to be all but inactive.
This time, the people who want to make some profit out of CLDS‘ shares decided to take on a different approach. As we wrote in one of our previous articles on them, there was a special website created that, supposedly, contains some sort of a report on CLDS. It looks pretty much the same as the regular pump emails with the only difference that they needed to make it longer and in an attempt to dramatize it further, the people who created it came up with some conspiracy theories according to which, the Chinese are about to launch a cyber-attack on the US and that CLDS have the key to save our precious data.
Brilliant piece of fiction, we reckon, but that said, the authors did receive quite a lot of money for their efforts – $2.5 million. And it really is baffling why would anyone want to pay that much money for a pump on a company like CLDS. We wrote a couple of articles on them already and every time we decide to revisit them, things seem to be getting worse.
Take the SEC filings, for example. The latest financial report that they published went live on January 22 and it covered the three months that ended on November 30. We mentioned numerous times that it paints an ugly picture for CLDS and that unless they manage to do something about their financial situation, they could end up serious trouble. Unfortunately, we have no idea if they managed to raise some more money since right now, nearly four months after the latest statement came out, we have no new data. More worryingly, the regular people who are considering CLDS as an investment option have no idea how they have been doing for nearly six months.
And speaking of CLDS‘ financial situation, we should point out that while the official documents are scarce, the same can’t be said about the news. The latest press release came out at the beginning of the month and according to it, CLDS have managed to secure some money. That is correct, they have received $350 thousand from an entity called Leeward Ventures. Having in mind all the facts above, it really is a wonder how anyone decided that their money is safe with CLDS.
It’s no wonder, actually. Leeward Ventures is owned by one of the company directors – Mr. Walter Grieves, and this is not the first time that he gives money to CLDS. According to the 10-Q, Leeward Ventures is already in possession of 1.25 million shares of common stock that they received as a conversion of notes. While it’s not specifically pointed out in the press release, we reckon that this number is about to get bigger, if it hasn’t already.
Anything else wrong with CLDS? Well, if they want to present themselves as solid computer company, they might want to take a look at the website for their MyComputerKey gadget as it’s not working at the moment. And it seems that they really want to look credible in the eyes of investors. Otherwise, why would they rent a virtual office?
