The Excitement Around Cloud Star Corp (OTCBB:CLDS) Is Starting to Die Out
In case you haven’t been visiting our website regularly during the last couple of months, you only need to take a quick look at the chart on the right and you will be able to figure out what’s been going on with Cloud Star Corp (OTCBB:CLDS).
The big pump started way back in March and as you can see it managed to draw a lot of attention to CLDS. Until then the ticker was pretty much dormant and the price that we can see from the historical records hovers around $0.20. It took the pumpers no more than two weeks to push CLDS to their staggering 52-week high of $1.47 per share. Normally, when there is this sort of activity, the company at least attempts to back the pumpers up by announcing new products, development around the existing ones etc. CLDS are a bit different, though.
In March only two press releases came out of their headquarters and they weren’t really all that compelling. This means that the pumpers had to put in some extra effort into the campaign and they did – they set up a whole website. We mentioned in our previous articles that its content is not all that convincing, but despite this, investors were loving CLDS.
True to form, the paid newsletters also took part, but that’s not really a surprise since the whole budget for the promotion is a mind-bending $2.5 million. With that in mind, the impressive run and the huge potential gains are not that much of a shock either.
Still, as you know all good things must come to an end and it would seem that during the last couple of days the pumpers have been slowly leaving CLDS alone. The ticker responded accordingly. It all started last Monday when the newsletters went eerily quiet and the stock started sliding down. Since then, we saw only one day which resulted in a green close and despite a few more emails sent out around May 20 and the total losses for the seven trading session amounts to 55% which, in turn means that CLDS‘ shares are now traded at around $0.46 or a full $1 under the pump high.
Even so, CLDS‘ market cap is estimated at around $44.7 million dollars and in case you’re wondering what you will get for that sort of money, we can’t tell you because CLDS apparently can’t be bothered with important things like informing the public about their financial situation.
If the state is similar to the one that is reflected in the quarterly report for the period before November 30, 2012, we would say that we can understand their anxiousness somewhat. As we already discussed, as of November 30 they had only $4 thousand in the bank and even though they announced that they have secured a $350,000 financing, you have to ask yourself: “Will that amount really be enough for the development, testing and marketing of the MyComputerKey gadget that they have been talking about?”.
While we can’t answer that question with a reasonable degree of certainty, we’re pretty sure that this money will be sufficient to finally fix the website for the aforementioned flash-drive-like box of tricks. When we last wrote about CLDS we mentioned that the website is not functional and it would appear that now, almost a week later, it still isn’t.
Both the pumpers’ and CLDS‘ negligence leads us to believe that the whole thing could be coming to an end. It was a long and tiring run, but we have to give it to them – they did put an effort. The technology sounds interesting, the whole awareness campaign was huge and some things like the virtual office (which, by the way, serves as a corporate HQ for another publicly traded company – Green Automotive Co (OTCMKTS:GACR)) were well thought out. It’s a shame that the investors who had to part with tonnes of their hard-earned cash are not amused right now.
