Ubiquity, Inc. (OTCBB:UBIQ) Still Running on Pump Aftershocks, PR
After we last covered Ubiquity, Inc. (OTCBB:UBIQ), the company’s stock has climbed significantly, going from $1.22 to its Monday close of $2.06. The reason for this escalation is likely the aftereffect of a large-scale pump campaign targeting UBIQ, as well as a new bit of PR the company dropped yesterday.
First of all, there’s the 30+ promotional emails sent out for UBIQ since November 18. The pump was a coordinated effort led by paying party MicroCap Innovations, LLC. Different promoters were paid sums ranging from a mere $3 thousand to a juicier $15 thousand, just so they send their ‘fortunate’ subscribers a tout for UBIQ.
The pump’s effect was almost immediate, dragging the share price out of the hole it dug itself into. Previously UBIQ dropped 70% over 14 sessions, so the pump kicked in nicely and managed to lift the price back up. The PR the company published yesterday concerned one of its future product releases that is allegedly in its final testing stages ahead of a 2015 release. The PR, combined with another pump email sent yesterday, likely helped UBIQ run further up despite some morning selling that knocked the price from its aggravated climb to $2.50.
The company published its latest quarterly on Nov 14 and it contained the following:
- $255 thousand in cash
- $4.2 million in current liabilities
- $29 thousand in Q3 revenues
- $5.1 million in Q3 net loss
Those are hardly NASDAQ-level financials, yet the company announced its plans to uplist to the NASDAQ back in early September. Following the end of Q3 the company also managed to issue 2.1 million shares for cash, with shares valued at $0.30 each – a significant discount from its market price.
Finally, there’s also the matter with the gentlemen Luis Carillo and Wade Huettel, who appear on the company’s formative S-1 and who were charged by the SEC for the orchestration of a pump-and-dump scheme back in March 2013.
Considering the combination of pumps, very slim revenues and grand plans for the future, investors are advised to do their own due diligence before making any decisions.
