Graphon Corporation (OTC:GOJO) Going Up The Rollercoaster

With so many companies working on the remote access market at the moment the future of the sector seems bright. However, taking into consideration that many restrictions still apply, groundbreaking solutions are a big boost for companies that can provide them.

Operating since 1996 Graphon Corporation (OTC:GOJO) is not new in the business of providing software solutions to its clients. They are now riding the wave of online computing, working to give people access to applications they need and favor anywhere, on any device.

4GOJO_chart.pngTheir stock has been going gradually uphill since the beginning of February right after it had experienced a big drop. At the moment they have a price of $0.74 per share which is the highest they have had since 2004. It’s really hard to say where this ticker is going considering that the volume of traded stock for the last days of the past month has been substantial. Here are some figures from the annual report that was filed with the SEC yesterday.

 

  • cash: $3,960,600 
  • revenue: $3,704,900
  • current liabilities: 3,896,900
  • net loss: $8,176,700

 

Looking at these numbers the situation seems rather grim. However, by studying yesterday’s annual report in more detail you can tell where they come from. This is neither comforting, nor depressing. The least you can tell is that they are a real business with actual activity and projects and not some shell company solely relying on profit from exploiting the stock market.

2LOGO.pngThe bad side in the whole situation comes from the fact that GOJO‘s revenue has not been growing as you would expect from a successfull company. In fact it is lower than last year by a tiny fraction. On the other hand, the company’s expenses are growing. This can be attributed to the research and development of hopTo, claimed to be a revolutionary application for the iPad that allows users to easily access and edit files from any location.

The announcement and anticipation of the upcoming application scheduled to be released in Q2 2013, alongside the annual financial report of the company may very well be the reason behind the growth of GOJO‘s stock prices experienced last month and the volume of stock traded. It is still unknown whether the company will do better after the release of their allegedly groundbreaking application.

Before it can be said for certain if GOJO is a safe haven for investors the company still has to prove itself as being profitable. Until that time comes it will be better for traders to tread carefully.

You may also like...