Was the Increase of Assets of UOMO Media Inc. (OTCBB: UOMO) Unfabled?
Yesterday, UOMO Media announced its results for the year, according to which, assets increased almost 15 times from $17,000 to $248,000. However, can we state that 92% of assets, which is accounts receivable, is real money? I agree that the company has made sales progress, but still the money isn't in their bank account yet. Let's try to dig deeper in UOMO.
UOMO Media Inc. (UOMO.ob, or OTCBB: UOMO) is a multi-channel entertainment company that acquires, produces, and manages intellectual media content and digital assets. As of August 13, 2009, the company still didn't have any employees. It looks like only executives are working there. Do they perform all the tasks by themselves?
Although, as mentioned earlier, assets of the company have grown, liabilities have as well. In 2008 the company had $299,000 of liabilities, in one year this grew to $987,000. In addition, long term debt of $259,000 has emerged. If you compare the two, you will notice that UOMO Media is unable to pay their debts.
Despite the huge debt, the company does not avoid new deals. Yesterday it was announced that UOMO Media has arranged a deal with OTC Picks, which is supposed to start a stock promotion program. For that service, OTC Picks has received $8,000, which does not seem to be a big deal when total liabilities exceed one and a half million dollars.
Looking at the stock chart, you will notice that currently the price is stuck between $0.01 and $0.25. After the last trade, the stock price improved slightly and rose by 17%. Thus the current share price is $0.21.
After hearing all the things about UOMO, aren't you spooked already? If not, then reconsider all the issues. Maybe your eyes will be soon opened.
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