Ubiquity Inc (OTCMKTS:UBIQ) Surges On Pump
Yesterday the stock of Ubiquity Inc (OTCMKTS:UBIQ) made another significant jump up the chart. The chart performance was truly impressive with the ticker closing at its highest point for the day of $0.435 per share. The daily price gain surpassed 20% while the traded volume of 523 thousand shares was four times higher than the monthly average.
It seems that investors are in no way worried about the myriad of red flags surrounding UBIQ. And we truly mean it – the company is simply riddled with warning signs. Speaking of warning signs opening the OTCMarkets profile of the company immediately reveals the first one – the Caveat Emptor skull and crossbones symbol has been hanging above UBIQ for quite a while. In our previous articles we informed you that it was put there due to the fact that the company has not filed several of its financial reports coupled with the regular paid pumps that have been targeting UBIQ‘s stock.
And wouldn’t you know it at the moment the company is being touted by a paid promotion. On June 14 the various newsletters affiliated with Damn Good Penny Picks released a flurry of alert emails for a disclosed compensation of $30 thousand. Yesterday new emails were issued by OTCtipReporter for a $20 thousand compensation, Stock Commander for the sum of $2000, Super Stock Tips for $7500.
As a result of the incessant pumping and UBIQ‘s price gains the market cap of the company currently sits at close to $96 million. To say that such a valuation is outrageously inflated would be an understatement. With UBIQ‘s missing annual report for 2015 and quarterly report for the first three months of 2016 we are left to rely on the quarterly report for the period ended September 30, 2015, according to which UBIQ have:
• $142 thousand cash
• $464 thousand total current assets
• $10.46 million total current liabilities
• $9,400 revenues
• $3.45 million net loss
Due to its limited resources UBIQ had to raise more funds through the sale of shares – subsequent to September 30, 2015, a total of 55.1 million shares were sold for just $1.8 million in proceeds. Apparently these funds were quite insufficient to cover the obligations of the company and as a result in March and April several lawsuits were filed against UBIQ alleging breach of contract, failure to repay promissory and convertible notes, and breach of a securities purchase agreement.
The latest filings coming from UBIQ have also been rather alarming. Since the start of the month two members of the company’s board of directors have resigned from their positions while Mr. Chris Carmichael relinquished the role of CEO resulting in the appointment of Mr. Nick Mitsakos as Interim CEO.
The combination of all these factors turns UBIQ into an incredibly dangerous stock. Plan your trades carefully and commit to anything only after extensive due diligence.
