4Cable TV International Inc (OTCMKTS:CATV) is Flying Again
Should I invest in 4Cable TV International Inc (OTCMKTS:CATV)? This is probably the question that brought you to this article and we’ll now do everything we can to help you get to the answer.
It must be said that things are not looking good when it comes to the overall stock performance. In fact, with a drop from a 52-week high of $0.23 all the way to just $0.0018 in a matter of just over eight months, it’s fair to say that CATV‘s performance is one of the worst we’ve seen.
The latest 10-Q is pretty terrible as well. It covers the first three months of the year and it looks like this:
- cash: $42,490
- current assets: $339,092
- current liabilities: $894,728
- quarterly revenues: $112,290
- quarterly net loss: $178,527
The inconsistent revenues and the continuous losses are certainly putting pressure on the share price, but the really big problem lies with the debt. More specifically, it lies with the toxic debt.
Like many of their penny stock counterparts, CATV have also been forced to rely on convertible notes in order to fund their operations. As is often the case, the conversions can be carried out at a discount to the market price which, in this instance, reaches 45%.
Although the first ever convertible note saw the light of day way back in 2013, CATV somehow managed to keep the stock printing within the realms of the reasonable, but by the looks of things, they might be having some problems doing that at the moment. In March, when the O/S count stood at less than 50 million, they raised the number of authorized shares from 100 million to 300 million. Between May 15 and July 8, the company printed 11 million shares, and some people around the message boards are saying that according to the transfer agent, there are more than 118 million CATV shares issued and outstanding at the moment. This, if it’s true, means that the stock has gone through a 94% dilution in a matter of less than two weeks.
That is pretty severe, but despite it, and despite all the other problems that we listed above, there are still people who are willing to put their money on the line. Yesterday, those people spent nearly $120 thousand on the stock and they pushed it up 33% to a close of $0.0032 per share. Explaining why they are ready to invest in CATV is a bit tricky.
The company hasn’t issued any press releases for over five months, there’s nothing positive in the recent filings, and there aren’t any promotions that could be pushing the stock in the right direction. The investors who are placing their Buy orders at the moment are driven by what some people around the message boards like to call “findings”.
It’s all related to an entity called Country CableVision Ltd. Apparently, a couple of domain names owned by the said entity are now pointing to the website of an internet service provider called Wave Broadband and the people around the message boards have automatically assumed that this is a guarantee for a future merger between the two enterprises. But what does that have to do with CATV? The link lies in the domain names themselves. They were apparently registered by Steve Richey, CATV‘s CEO.
You’ll be the one to decide whether the word “findings” really is appropriate or whether “rumors” and “speculation” offer a more suitable description to the colorful, all-capital posts that can be found on the internet forums. Bear in mind, however, that this is not the first time CATV is fueled by message board hype. At one point, for example, people were saying that we should hear news about a new product and instant sales “in the next 30 days or less”. That was 54 days ago.
