Q4 Systems Corp (OTCMKTS:QFOR) Slammed to 52-Week Low
After months of trading in mostly five-digit share volumes, on Friday Quadrant 4 Systems Corp (OTCMKTS:QFOR) logged over 1 million shares traded. Sadly, the price action was not nearly as hot, with QFOR dropping 23% to a new 52-week low at $0.21 per share.
The massive sell-off came as a bit of a shock. There have been no press releases coming from the company for months, barring the quarterly performance announcements and the accompanying reports. As a matter of fact, one of those arrived just a couple of weeks ago, on Sep 18. The company’s balance sheet as of June 30 contained the following:
- $634 thousand in cash
- $15 million in current liabilities
- $13 million in Q2 revenues
- $126 thousand in Q2 net income
There is of course the matter with QFOR running awfully late with its reports. This started with the annual for fiscal 2014. After a notification of late filing on April 1, the report arrived in late August, nearly five months overdue. The Q1 report arrived just 9 days before the Q2 one, which too was late.
This staggered filing pattern obviously hurt QFOR on the charts but the daily price movement happened on far humbler volumes. What prompted the massive volume spike yesterday is hard to tell. There has been no adverse material information put up in recent days that could have caused this and the latest quarterly has been up for a full week by the time QFOR crashed.
The report itself has nothing particularly unpleasant about it, with revenues up YoY and nearly flat quarter over quarter. The company has not diluted its outstanding common stock considerably, with the count growing from 99 million OS in Nov 2014, to 103 million in mid-September 2015.
Whether today will bring reversal, with QFOR becoming oversold by Friday’s close, or the sudden slump to a 52-week low will scare more people out of the stock remains to be seen.
