Will Ubiquity Inc (OTCMKTS:UBIQ) Hold Its Gains?
For the past three session the stock of Ubiquity Inc (OTCMKTS:UBIQ) has been climbing up the chart. Yesterday the ticker closed the trading day at exactly $0.33 per share for a daily gain of 6.45%. Investors’ interest towards the company is also growing with over 300 thousand shares changing hands during the session surpassing the monthly average by nearly 3 times. Will the company manage to sustain its upwards climb, though?
On Tuesday UBIQ announced their intention to spin off their broadcasting studio business while early in the morning today the company published a PR announcing the appointment of Mr. Nicholas Mitsakos as CEO. The problem is that the CEO may have changed but the underlying fundamentals of the company have remained the same. And it won’t take long for the red flags surrounding UBIQ to start cropping up when you begin researching the company.
For some the fact that UBIQ‘s OTCMarkets profile page still carries the Caveat Emptor warning sign may already be enough to realize just how risky trading the stock really is. That, however, is just the start. Despite already being June both the annual report for 2015 and the quarterly report for the first three months of 2016 still haven’t been filed by the company. At least at the start of May the financial report covering the quarter ended September 30, 2015, was completed showing that back then UBIQ was in an atrocious financial state with:
• $142 thousand cash
• $464 thousand total current assets
• $10.46 million total current liabilities
• $9,400 revenues
• $3.45 million net loss
After the end of yesterday’s session UBIQ‘s market cap stands at more than $72 million, valuation that is grossly disconnected from the reality of the company.
The quarterly report revealed even more alarming information, though. Between September 30, 2015, and April 18, 2016, UBIQ raised $1.82 million in cash proceeds through the sale of more than 55 million shares. This means that on average each share had a price of $0.03, which is ten times lower than yesterday’s closing price.
With so many cheap shares seeing the light of day it shouldn’t be such a big surprise that UBIQ has been regularly pumped by paid promotions. The latest alert emails were send after the end of yesterday’s session by the pumpers otcmagic and Winston Small Cap. For their services they disclosed receiving compensations of $10,000 and $12,500, respectively.
In early trading today UBIQ is climbing further up currently sitting 5.15% in the green at $0.347.
