Martin Tsvetkov

Simulated Environment Concepts Inc. (PINK:SMEV) Embarks on a Journey to the OTCQB Marketplace

by Martin Tsvetkov July 5, 2011
SMEV_chart.pngAccording to an iHub poster on the message board dedicated to Simulated Environment Concepts Inc. (PINK:SMEV), "SMEV is doing good, but the amount of shares and the public float is less than favorable." Is he/she on the right track?

Last Friday, SMEV stock gained 18% in value on a brand new press release. Thus, SMEV clocked in at $0.0013 per share, continuing its steady improvement over the two-year low of $0.0006 hit on Jun. 20. The turnover, on the other hand, went past the 2.3 million mark, which as compared to other session scores and the average daily trading volume for SMEV stock, is a pretty sub-par performance. Nevertheless, a new batch of trade alerts flooded investor e-mails yesterday aiming to raise awareness about SMEV stock in the forthcoming session.

Anyway, the double-digit price surge is a fact and it is most probably attributed to a corporate update drawing a fairly optimistic future lying ahead of the company. Not only did SMEV managers reveal that they were on the verge of bringing the auditing process to a successful end, but they also expressed their readiness for 'an easy and smooth transition to the OTCQB'. While such an upgrade would seem nothing short of a major step toward maximising shareholder value, it does not appear to be the main source of concern among stockholders. Rather, what disturbs them most is the amount of the A/S. As of Dec. 31, 2010 the latter amounts to a staggering 11 billion. At the same time, 566 million shares have been issued and outstanding.

Prior to Friday's news, i.e one day earlier, SMEV published an alternative quarterly report covering the three-month period ended Mar. 31, 2011. According to the unaudited balance sheet, SMEV possesses:

  • $1,292 in cash;
  • working capital deficit of $1.5 million;
  • $578K in sales revenue and net income in excess of $93 thousand.

SMEV_logo.jpgSMEV's management recently went a little bit too far by saying out loud that the company would one day reach a market cap of at least $0.5 billion. If this scenario were to materialize, that would mean that we are all looking at the next 70-80 bagger. Anyway, SMEV supporters would be perfectly satisfied even if the company only became the next 5-10 bagger.

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