Cloud Security Corp. (OTCBB:CLDS) Keeps Slipping

4CLDS_chart.pngAfter a wary, low-volume session and a flat close on Wednesday, Cloud Security Corp. (OTCBB:CLDS) turned red in Thursday’s session and Friday saw the ticker chart a deeper red swath. CLDS dropped another 16% to a close of $0.40 per share on over half a million shares traded.

The ticker went through a big price surge in early autumn, swelling from $0.30 to $0.80 in less than a month. This may seem like chump change to the people who were keeping an eye on CLDS back in spring 2013, when the ticker shot up to an all-time high of over $1.40 per share.

Sadly, both in spring and autumn, CLDS‘ movement up the charts was backed up by promotional pump campaigns. While there were pump emails in spring, as well as a landing page for the ticker, the second promotional push is carried out using a relatively new landing page put up in mid-August, as well as a paper mailer that traders reported receiving in their snail-mail boxes.

The disclaimer at the end of the landing page and the paper mailer scans put up on the Internet list $750 thousand in paid compensation for the promotional effort. The promotional materials contain the run-of-the-mill babble, complete with unrealistic price targets for CLDS stock and comparisons to huge, established computer security companies such as Symantec Corporation.

On the other hand, as of its latest financial report dated August 31, CLDS is an enterprise with under $20 thousand in total assets and no revenues since inception. In mid-September the company did announce securing a deal with Kodiak Capital Group, LLC for the sale of up to $2 million worth of CLDS shares. However, the last quarterly report mentions that Kodiak was issued 283 thousand shares, never detailing the share price or the total sum the issued shares were valued at.

With the performance of the spring pump in mind and the fact that CLDS has so far crashed exactly 50% from its early October high, and factoring in the current rather expensive promotion for the ticker, traders may want to be extra careful with this one.

52IWSY_chart.pngOther big percentile movers from Friday’s session include ALJ Regional Holdings, Inc. (OTCMKTS:ALJJ) who closed 26% up. Imageware Systems, Inc. (OTCMKTS:IWSY) managed to clamber back above $2.00 per share, closing 18% in the green.

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