Umax Group Corp (OTCBB:UMAX) Surges After PR Article
The last two months have been quite eventful for the shareholders of Umax Group Corp (OTCBB:UMAX). Ever since its horrendous crash in mid September when it lost nearly 70% of its value in a manner of days dropping from $2.98 to just $0.80 per share the stock has been on a constant roller coaster ride. As you can see from the chart every attempt at a recovery has been met by an almost equal downfall. Currently the stock is once again on the uprise closing Friday’s session 20% up at $1.14.
The surge came most likely as a result of the PR article released by the company on November 7. This may have surprised investors because prior to it UMAX had not made a single announcement outside of their SEC filings. Still, the market responded immediately and during the next session 257 thousand shares changed hands, more than twice the average amount.
The company revealed two new strategic partners – Ship-Right Solutions and Core Logix.
Ship-Right is a full service logistics firm while Core Logix is a call center that is going to receive all the sale requests for UMAX‘s products. Which, by the way, are just three according to the official site of the company.
And before you get overly optimistic keep in mind that the same products managed to bring only $7000 in revenues for the quarter ending July 31. The other financial results for the period were:
- cash: $8,526
- current assets: $10 thousand
- current liabilities: $28 thousand
- quarterly net loss: $19 thousand
On September 10 they were able to significantly improve their cash reserves by selling 100 thousand shares priced at $2 each. But until the next report is filed we won’t know how far their business has progressed. Not to mention that the current market cap of $111 million is grossly disproportionate to the reality of the company. If you are contemplating investing in UMAX be sure to do your own research and decide on appropriate time horizons in order to minimize the possible losses.
Before the weekend the stock of Global Earth Energy Inc (OTCMKTS:GLER) continued sliding towards the bottom by further losing 26% of its value and dropping to $0.0025 per share. On the other hand First Liberty Power Corp. (OTCMKTS:FLPC) rose to yet another 52-week record of $0.07.