SourcingLink.net, Inc. (OTCMKTS:SNET) Failing Despite the Promotional Campaign

After the incredible boom in price in the end of last week SourcingLink.net, Inc. (OTCMKTS:SNET) haven’t been doing well and had lost 67% from their value until yesterday’s close. Today they are continuing the trend and have already lost a quarter of their value in just over an hour of trading.

The incredible 728% gain that SNET‘s stock experienced in Thursday’s trade session was short lived and the stock started to slide down fast with a loss of 34% the very next day, as they closed the week at $0.19 on more than 4 times their average volume and a trade value of $991 thousand.

This week didn’t start well either, as yesterday’s percentile loss was even bigger. With a total of 50% down the ticker closed the session below one cent, valued at $0.0945. The amount of shares that switched hands in the end of the day came close to the one from Friday, however, the huge loss in price took its toll and they closed the day with a trade value of $469 thousand, despite the promotional emails that were flying around.

As we mentioned in our previous article about SNET they have switched their business plans quite a few times, going through merchandise-sourcing solutions online location for display, search and comparisong functions for retailers as well as management of data and communications betwen merchandise suppliers and retailers, the automotive business (more specifically luxury automobile membership services) and last but not least mineral exploration.

This doesn’t speak well for their determination, but let’s take a look-see at what they have to offer in their latest quarterly report covering the period ended June 30, under the alternative reporting standard in the OTC Markets.

 

• cash: $18 thousand
• current assets: $201 thousand
• total current liabilities: $189 thousand
• revenue: $1.3 thousand
• profit for the three months: $22.7 thousand

 

Now, you might think how they managed to close at a profit with only $1.3 thousand in revenue and general and administrative expenses of $19.2 thousand. They simply added $42.5 thousand in stock based compensation and voilà, they ended at a profit. When we add the fact that their address is a virtual office rental building to this not-so-clever trick it all starts to look rather grim.

All in all SNET is a risky investment choice that is continuing to slide in a downward direction even today and it seems like nothing can stock the stock from going even further down. If you are thinking of buying in the low in hopes for a comeback be prepared to take a huge risk.

Another stock that is going through a tough period is that of Soul and Vibe Interactive Inc. (OTCBB:SOULD), who have been sliding down the charts since the end of last month. After they reached a peak of $4.50 per share around July 20 they have lost 85% from their value until today and are currently priced at $0.65.

Not to mention Xumanii, Inc. (OTCMKTS:XUII), who have had a total of 3 trade session in the green since the beginning of the month and are definately heading for the bottom. They are currently price at $0.0301 or 95% below their peak from July 22.