4Cable TV International Inc (OTCMKTS:CATV) Back in Double Zeroes
When something looks too good to be true, most of the time it isn’t. Likewise, those who were enthusiastic about the recent price spike of 4Cable TV International Inc (OTCMKTS:CATV) and believed it will soar much further, had their expectations clipped severely. Yesterday CATV came crashing down and lodges itself back under a penny.
By the closing bell CATV was sitting at $0.0094 per share, a whopping 56.8% below its previous close. The fact that the ticker jumped from the lower end of double zeroes to two cents per share without any reason for such movement – no PR, no filings, no positive news – should have probably served as warning to easily excitable traders.
There was a new filing in CATV‘s feed yesterday – a Schedule 13G disclosing Typenex, through another entity, held 9.99% of the company’s common stock, at 5 million shares. The important part here is that were it not for a contractual cap that limits ownership to 9.99%, Typenex’s ownership “would exceed such cap”, which means there’s more shares to issue and dilute once Typenex sells enough of its current block.
CATV‘s list of notoriously toxic financiers includes JMJ Financial and LG Capital. The company’s latest quarterly reveals that over the last six months CATV issued convertible notes that can be turned into shares at discounts reaching as high as 45% of the lowest closing price, a number of days before conversion.
Where CATV is headed from this point on and whether there will be more wild, volatile swings in price before things settle down remains to be seen.
