Quadrant 4 Systems Corp (OTCMKTS:QFOR) Breaks the Fall
December started off well for Quadrant 4 Systems Corp (OTCMKTS:QFOR)’s shareholders. Momentum was strong from the very beginning and the ticker managed four green sessions in a row without even breaking a sweat. A decent run, no doubt, but the best was yet to come.
On December 6, about an hour after the opening bell, the company issued a press release which informed us that they have launched their 1nvoice unified billing system that will ease the life of people who use private healthcare exchanges. Undoubtedly, this was a major development and investors reacted accordingly.
Some intense buying pressure appeared just minutes after the announcement hit the wire and when the closing bell rang, QFOR was already standing around 22% above December 5’s value. The momentum was strong over the next session as well when volumes were still significant and another 21% were added to the price. Things were looking good and if message boards are anything to go by, people truly believed that the ticker is in for a massive run.
Unfortunately, this didn’t turn out to be quite the case. Last Tuesday QFOR slipped by around 6% which, in all fairness, isn’t that catastrophic for a volatile penny stocks. The ticker’s position, however, took a turn for the worse over the following sessions. A lot of selling resulted in a total of four red days and a drop from around $1.38 to $0.87 which is more than a third of the value gone.
The fall was particularly strange because of the lack of any apparent trigger. In fact, on December 10, QFOR announced that they have elected to use VoltDB (quoted as the world’s fastest database) as the database for their online transaction processing applications. According to the press release, VoltDB is the best possible product for their needs and will help with the performance of their software immensely. The share price, however, was behaving as if nothing had happened.
Some people blamed short sellers while other said that there might have been some profit taking and these two scenarios are certainly possible, but there is another one that has generally been overlooked.
As we mentioned in our previous articles, QFOR has been the target of an awareness campaign for some time now and, as you probably know, in Pennyland, the increased interest often results in a less than impressive chart movement. Over the last few months Red Chip Companies have been the main promoter but last week we saw another entity called SeeThruEquity LLC jump in. They wrote a research report on QFOR and awarded the ticker a price target of $5.25.
At this point we should probably mention that around 9:00AM on December 5, SeeThruEquity issued a similar report on Guar Global Ltd (OTCMKTS:GGBL), estimating that the company could one day be valued at around$1 per share. Exactly twenty-four hours later, the SEC decided to issue a temporary suspension order on GGBL.
Speaking of which, QFOR managed to bounce back up yesterday when around $453 thousand worth of traded shares resulted in 22% in gains and a price of $1.07 per share. Once again, there wasn’t any immediately obvious catalyst for the green run and, naturally enough, people are asking themselves: “Will it continue?”. Unfortunately, we’ll need to wait and see, but whatever happens, you should consider the risks carefully and do the proper amount of due diligence before investing any money.
Petro River Oil Corp (OTCBB:PTRC) is another strong performer from yesterday. A private placement has been closed and that, apparently, was enough to propel the ticker to more than $0.06 (around 33% above its previous value). Things didn’t look quite so bright over at Nutranomics, Inc. f/k/a Buka Ventures Inc (OTCBB:NNRX)’s camp. The management team failed to publish the quarterly report that was due yesterday and that, in turn, resulted in a 37% drop and a price of just $0.25 per share.