Ubiquity Inc (OTCBB:UBIQ) Pushed Up by Another Round of Pumps

It’s safe to say that Ubiquity Inc (OTCBB:UBIQ) won’t be nominated for the “Best Performing Stock of 2014”. Back at the beginning of October, the ticker was hovering around the $5 per share mark, but it then slipped and just over a month later, it was sitting at under $1. Then the pumpers came along and helped it recoup some of the losses, but at one point, the emails stopped and the ticker found itself on a downward slope once again.

Now the pumpers are back. Several third parties paid a total of $30 thousand and in exchange, a few prominent outfits like Stock Mister and Stock Preacher organized an email campaign which started a few hours after the closing bell on Thursday.

Despite the terrible swings UBIQ has experienced over the last few months, investors apparently decided that listening to the pumpers’ advice might not be a bad call. During Friday’s session, they traded nearly 140 thousand shares which resulted in a dollar volume of just under $170 thousand. The ticker didn’t really pop (as Stock Mister predicted), but it did add a healthy 6% to its value and finished the week at $1.20 per share.

The green session shouldn’t really be that much of a surprise because UBIQ has already shown us that when the pumpers are around, the stock is able to move. Unfortunately, as we mentioned already, when there’s no artificial hype, its behavior is quite a bit different. Is this about to change, though?

On December 4, the company issued its latest press release. In it, the management team said that they have soft launched a mobile application called Gift Sender. They apparently reckon that it’s going to be a huge success, and they also said that the revenues will be coming mostly from corporate licenses which, theoretically speaking, should be a much more solid source than in-app purchases.

Hopefully, everything will go according to plan because if it doesn’t, the shareholders will be faced with some disappointing 10-Q’s and 10-K’s in the future. And they’ve already had enough of those. Here, for example, is what the company recorded at the end of the third quarter:

  • cash: $255 thousand
  • current assets: $2.1 million
  • current liabilities: $4.2 million
  • quarterly revenues: $29 thousand
  • quarterly net loss: $5.1 million

A quick look into the older statements reveals that the revenues have experienced a rather significant jump on a quarter-over-quarter and on a year-over-year basis which is, undoubtedly a good thing. Even so, the figures are not really solid enough for a company that wants to be listed on NASDAQ, and you have to agree that they seem somewhat disconnected from the market cap which is currently sitting at around $123 million.

So, now that we’ve seen all the facts, let’s get back to the burning question: “Will UBIQ manage to put on a more decent performance this time?”.

If the company starts generating some meaningful revenues and if they sort out the problems in the balance sheet, this might just happen. At the moment, however, nothing can be certain which is why considering all the red flags is absolutely essential. And as we mentioned in some of our previous articles, there are quite a lot of them.

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