Ubiquity Inc. (OTCBB:UBIQ) Attempts a Climb on Pumps
What’s painted red and dropping faster than a bad facelift? One answer would be the stock of Ubiquity Inc. (OTCBB:UBIQ) over the past two months. After trading at $5.5 per share in early October, UBIQ clambered to a close at $1.22 yesterday.
We last covered the company one month ago and what came up was far from rosy. Starting with the involvement of Luis Carillo and Wade Huettel, notoriously charged by the SEC for orchestrating a pump-and-dump scheme, in the company’s formative S-1 filing, then going through UBIQ both increasing and decreasing its outstanding shares through splits within 13 months and switching names names twice within the same time, UBIQ is looking rather peculiar.
In addition to the shares issued at $0.65 for an older cash injection, the company’s latest quarterly report also mentions that UBIQ issued 2.1 million shares for $645 thousand, putting the price of the newly issued shares at $0.30 per share – a far cry even from UBIQ‘s recent bottom at $0.80 last Friday.
The short rundown of the company’s latest 10-Q is as follows:
- $255 thousand in cash
- $4.1 million in current liabilities
- $29 thousand in Q3 revenues
- $16 thousand in Q3 gross loss
- $5.1 million in Q3 net loss
The company’s expectations to ramp up revenues in the latter half of 2014 seem to have lagged a little. The company is still selling its products and services below cost, leading to gross loss, even before expenses are factored in. The balance sheet reported as of September 30 makes it difficult to imagine why on Sep 11 UBIQ decided to drop a PR announcing the company’s intentions to uplist to the NASDAQ.
This is without counting in the slew of pump emails that were sent out over the last three days. Over 30 tout emails for UBIQ were dished out, compensated with sums of money ranging between a modest $5 thousand to $15 thousand per promoter. The pumps no doubt helped with UBIQ‘s two-day climb but it remains to be seen when they will exert their inevitable aftereffect – sending the price tumbling as they crash.
