Xumanii, Inc. f/k/a Medora Corp (OTCBB:XUII) Could Be In for Quite a Day
The developments around Xumanii, Inc. f/k/a Medora Corp (OTCBB:XUII) have been quite interesting recently. Not surprising, but interesting. It all started with a pump campaign dated May 1 when a number of newsletters affiliated with the infamous Victory Mark entity started touting XUII. As a result of this, the stock shot up gaining nearly 200% in a single trading session. Yesterday was not as successful and while the volume was quite high the ticker plummeted, losing 35% of its value after eight hours of trading. That is quite a movement considering the fact that before the promotion was initiated, XUII‘s shares were all but dormant. Do they deserve so much attention, though?
Well, let’s look at the cold hard facts. Even after yesterday’s crash, XUII‘s market cap is estimated at more than $65 million. For that not-at-all-modest amount you get a company in a deeply distressed financial situation. As we mentioned in yesterday’s article, the latest quarterly report for the period that ended on January 31 shows the following figures:
- cash: $7 thousand
- current assets: $22 thousand
- current liabilities: $975 thousand
- revenue since inception: $0
- net loss since inception: $956 thousand
You also get a company that wants to develop a special kind of social network-type website through which you will be able to watch sporting events and concerts live and in HD quality. And you will get a business venture that has a single person taking care of all things related to the day-to-day operations. It’s not exactly a bargain, is it?
XUII, apparently, beg to differ and it would appear that they were not amused when they saw yesterday’s crash. After the closing bell they issued a press release stating that they have signed a license agreement according to which they will be able to use a clever piece of technology that will significantly increase the rate at which videos are uploaded and distributed through their system.
That all sounds great but, as always, we have our questions – “How much will XUII pay for the license?”; “Will there be any royalties due once (and if) the revenues start flowing?”; “Who owns the technology?”; “When will it be implemented?”.
We doubt that XUII will give us the answers any time soon but in case you are wondering about the same things, you can write to them at PO Box 309 Ugland House, South Church Street, George Town Grand Cayman KY1-1104 Cayman Islands, where your letter will be mixed with the incoming mailing correspondence for thousands of other business entities. In our previous article, we mentioned that President Obama once said about Ugland House that it’s “either the biggest building in the world or the biggest tax scam in the world”.
We did some more research and we managed to find an actual picture of the house that serves as an office for tens of thousands of business entities and as you can see, it’s definitely not the biggest building in the world. In case you are wondering, this ranking is lead by the Boeing Everett Factory located in Everett, Washington, but we’re not sure that even the 4.3 million square feet that it occupies will be enough to accommodate more than 19 thousand companies.
We reckon that this is enough of a reason to weigh the risks carefully before making any decisions on XUII, but just in case you’re still not convinced, we have included the chart for Harbor Island Dev (OTCBB:HIDC) – a company that got pumped by pretty much the same newsletters on April 15. As you can see, they have lost a whopping 88% since then.
