Pumpers Are Still Convinced That O2 Secure Wireless Inc (PINK:OTOW) Can Make It
You have probably come across motivational speeches carried out by successful people where they say things like “Don’t give up on your dreams.”, “Be persistent.” and other such things in an attempt to boost your morale. The paid pumpers who are once again on the trail of O2 Secure Wireless Inc (PINK:OTOW) have probably been listening to similar discourses recently.
Normally, when we start a research on a company, we always try to understand what their core operations and sources of revenue are. With OTOW, things are a little bit trickier. They appear on the news every now and then stating that they have developed a system that will help you withdraw cash from an ATM machine more easily. Then they say that they have launched their very own branded and totally secure debit card. A few weeks later they are finalizing the quality checks on the smartphone that they will start selling to the general public. On the other hand, they say that their primary field of operations is providing consultancy, services and equipment for wireless internet infrastructure. With so many projects, all being developed at the same time, it makes us wonder if the people working for OTOW ever have enough time to get some sleep.
Whether they do or not, however, doesn’t concern us. What we’re interested in is whether they can get any of the products off the ground and, more importantly, if they will ever reach profitability. Looking through their financial statement for the year that ended on September 30, 2012, we’re not convinced. Here are the most important figures:
- cash: $9 thousand
- current assets: $61 thousand
- current liabilities: $802 thousand
- revenue: $19 thousand
- net loss: $177 thousand
You certainly won’t find those figures in the press-releases that have been frequently published by OTOW. Speaking of press-releases, we read through the articles about OTOW that we have written in the past. One thing in common about them is that we covered temporary surges in the price and surprising chart movements due to some news hitting the websites that got investors excited. None of the things that we read in those PR’s came true however, which means that the price plummeted soon after the hype was gone. An investor on iHub has also been following OTOW closely and he has gathered a collection of news that came out of OTOW‘s headquarters that turned out to be somewhat fictitious.
This time there is no PR campaign to help promoters in their attempt to raise awareness around OTOW, but even they alone are sometimes capable of giving the price a boost and then letting it fall down like a rock, infuriating a lot of investors along the way. The last time OTOW were part of a promotional campaign, this is exactly what happened. It was back in February and in the heat of the pump, OTOW reached a massive $0.25 per share. Yesterday, after a 16% increase, they closed at just $0.07. That’s 72% down in just over a month.
We reckon the same thing will happen again this time, and if people trust the promises made by he emails, they could once again end up seriously burned. This is exactly what happened when today’s promoter, Inside Bulls touted AUCTIONS INTL INC (PINK:AUCI) not more than a couple of days ago. After gaining quite a lot of ground, on huge volume, AUCI crashed hard wiping out 50% of the price that it reached during the pump in just a couple of days.