Quantum Int. Corp (OTCMKTS:QUAN) Going Down Again
Until about two years ago, Quantum Int. Corp (OTCMKTS:QUAN) went by the name National Clean Fuels Inc. and the stock was traded under the ticker symbol NACF. We wrote a couple of articles during that period and if you take a quick look at them, you will see that the company relied mostly on some optimistic press releases to get their stock off the bottom of the charts. While the name, the business and the management has changed, they still seem to be employing the same strategy.
Back in 2010, for example they said that they’re going to generate electricity from biomass and the price shot up in the sky. A couple of days later, when the PR department took a little break, the ticker took a tumble.
Now, more than two years later, QUAN are in a different business and last week they issued a press release in which they said that they’re entering the prototype phase of the mind-bendingly revolutionary, state-of-the-art iPad casing and, while it might sound a bit far-fetched to us, it did manage to give the stock a nudge in the right direction meaning that within about a week the gains amounted to no less than 45%. Then came another announcement (which sounds even funnier) according to which, QUAN‘s iPad casing will be helping the elderly and the “technically challenged” better understand Apple Inc. (NASDAQ:AAPL)’s revolutionary tablet. This time, however, traders were having none of it and after closing another 20% down yesterday, the losses in just two trading sessions amount to around a third of the price. All in all, it’s exactly the same performance that we witnessed back in October 2012, but are there any other similarities between the past and the present?
Well, the business is different, the management team is different but with a bit more research, you can definitely see some things repeating themselves over and over again. Take the company CEO back then, for example. His name is Maurice Stone and when you dig a bit further, you will see quite a lot of things that would normally make you think twice before investing in any of his companies. He was (or, in some cases, still is involved) with other penny stock ventures like Go Solar USA, Inc. (OTCMKTS:GSLO) and Sunrise Solar Corporation (OTCBB: SSLR) – two companies that have been suspended by the SEC and are currently on the Grey Market. He was also named as defendant in a court case from 2009. You can safely say that things were pretty shady back then, but what about today?
Well, if you follow our articles closely you will probably know that the situation isn’t any better. The person currently at the helm of QUAN is called Mr. Robert Federowicz and the About us page on their website says that he has a comprehensive knowledge of the international market and that he has a decade of experience in leading small cap publicly traded companies. We can agree with the latter. He was (or is) involved with the following small cap enterprises: OBJ Enterprises f/k/a Obscene Jeans Corp. (OTCBB:OBJE), Emerging Health Sol. (OTCMKTS:EHSI) (who got suspended by the SEC in 2011), First Titan Corp (OTCBB:FTTN) and Aristocrat Group Corp (OTCMKTS:ASCC). Kathleen Delaney, QUAN‘s Legal Counsel, on the other hand, has also worked at EHSI and she is still listed as the CEO of another Grey Market venture – Gulf Alternative Ene (OTCMKTS:GAEC). So while the names are different, there are still plenty of red flags around QUAN and its management team.
We should also mention that when the company was traded under the NACF ticker, it never managed to generate even a dime in revenue and looking at the filings of all the companies listed in the paragraph above, we’re struggling to see how they will managed to do it with their robotics products (if an iPad casing can be qualified as one). Make sure you do your own due diligence before making any decisions that might prove costly.
