The big rise followed by the sharp drop - one good way to describe the stock performance of Quadrant 4 Systems Corp (PINK:QFOR
, QFOR message board
). Another - the 40 cent barrier stock. Overall, a pink sheet that is constantly in an "all-or-nothing" mode.
There are lots of examples for the above. In the last week of May, the stock price doubled. In the first week of June - it dropped by almost 50% in a matter of days. Then - another sharp rise; followed by the most recent free fall, the last session closing at $0.35 per share. What is more, this volatility does not come along with huge trading volumes. Apart from a few trading sessions back in January, the daily trading volume rarely exceed 50k, and there are many sessions with no trading activity whatsoever.
Another interesting fact about this enterprise is that although it files all SEC documents regularly, they are not easy to find. Neither finance.yahoo.com, nor otcmarkets.com or other major financial websites has even a single quarterly statement in their databases. To check the financial condition of this company, one needs to go directly to sec.gov and take them from the database. Yet, much like the stock performance, the balance sheet is not much of a source of optimism.
For example, among other figures, this is what the 10-Q for the first 3 months of the year includes:
- $8 million in total current assets;
- $13.8 million in total current liabilities;
- $3.5 million in deficit;
- $5.4 million in revenues;
- $167k in net loss;
Nothing particularly extraordinary in the above figures. But, at a second glance, some peculiar facts come into place. For example, the total current assets are actually comprised of $8 million in accounts receivables and $5.2k in cash. Quite interesting position. Another interesting comparison might be the revenues. Five millions in the first three months of 2011, $11k for the first three months of 2010. Booming development indeed. The question is - if a company is able to increase its sales in such a rapid manner, why is there barely any interest in its stock.
In terms, the above makes QFOR just another pink sheets enterprise, surrounded by uncertainty and risk. Whether greater risk comes with greater profits in this particular case, it is yet to see.