Xuimanii International (OTCMKTS:XUII) Dives Yet Again

When Awesome Penny Stocks finally left Xuimanii International (OTCMKTS:XUII) to its own devices, the ticker was hovering around the $0.04 mark and was dropping rapidly. It served as proof of how painful penny stock promotions can be and quite a lot of inexperienced investors saw the ticker as a monument of their broken dreams of wealth and fortune. Mr. Adam Radly, however, had big ideas for the company.

He took control over XUII at the beginning of October, hired a virtual office, and decided that he is going to change the business plan. A press release hit the wire on October 1 in which we read that Inova Technology Inc (OTCMKTS:INVA) (a penny stock that has displayed an absolutely terrifying performance over the last couple of years) is going to sell XUII a clever piece of technology in exchange for some preferred shares. A quick check reveals that Mr. Radly is the CEO of INVA as well and probably because of this, investors weren’t too keen on jumping in.

A few days later, it was decided that the deal won’t be in XUII‘s best interest and it was called off which meant that Mr. Radly had to come up with another plan. He did it in record time.

On October 18, less than three weeks after he took the helm, he told us in a press release that from now on, XUII is going to do business under the name Imerjn and said that the company will focus on mobile solutions for asset tracking. Once again, however, investors seemed unimpressed. The ticker didn’t really move all that much and at the end of November it logged a rather scary drop that culminated in a 52-week low of just $0.015.

Another change of tactics was in order and this time, it proved to be more successful. On December 3, XUII issued another press release with which they informed us that they will be entering the fiercely competitive market of tablet computers. Apparently, XUII‘s product will have a 7-inch and a 10-inch versions, it will use Google Inc (NASDAQ:GOOG)’s Android operating system, and will be available in an electronic store near you by the end of January 2014.

Investors responded and we saw some increased volumes. Although the performance has been somewhat shaky, people seem hopeful about XUII once again. But should they be?

One thing is for sure – developing and commercializing a competitive product in such a small time frame won’t be easy, but even so, the more optimistic among you will probably point out that, theoretically at least, it is possible.

That’s true but let’s take a look at how well the other side of XUII‘s business – the asset tracking applications – is doing. The company website says at the moment that they are not ready with the apps and that their first creations should be “released before the end of the 2013 calendar year“. This means that, as of the time of writing this article, they have a little over 30 hours to finish the whole thing and get it online.

Will they be able to do it? Will they manage to keep the deadline for the all-important tablets? Time will tell but in the meantime, you should consider one more thing that could put a rather big spanner in the works, especially in terms of stock performance.

As we mentioned in our previous article, XUII‘s latest financial statement leaves a lot to be desired and that’s why, at the beginning of December, they issued a convertible note to an entity called Hanover Holdings I, LLC. They received $300 thousand as a part of the agreement which is already a 33% discount but, perhaps more worryingly, the note can be turned into common stock at any time, at a fixed price of $0.006 per share. In case you’re wondering, this is around 83% below the current value of $0.035.

With that in mind, the 9% drop from last Thursday and the 25% dive from Friday seem hardly surprising.