Borislav Tonev

Anything Tech Media (OTCMKTS:EXMT) Falters Amidst Pumps and PR's

by Borislav Tonev February 7, 2014

As evident from our coverage, back in March 2013, they were the target of several promotional outfits. This hasn't changed. We received the last no-compensation email from Stock Orange shortly before the start of yesterday's session. The promotional effort certainly drew some attention to the ticker, but was it really enough to spark the colossal dollar volume which has exceeded $1 million over the last couple of days?

It seems not. Apparently, like BRDT, EXMT are also trying to take a piece of the scorching hot cannabis sector. The legalization of recreational marijuana in the State of Colorado triggered an absolute explosion on the OTC markets and every single one of the so-called pot stocks has experienced incredible trading over the last four weeks.

EXMT is no exception, but its volumes were particularly intense over the last two days. The price movement is also notable. On Wednesday, the ticker surged by as much as 159% but yesterday, it hesitated a bit and finished the day around 7% below its previous value. Still, investors seem confident about the future and say that the run will continue. But will it?

The hype is extremely strong at the moment but a sustained surge seems somewhat unlikely. Not least because the financials found in the latest quarterly report are not sufficient to justify the market cap which, at yesterday's close, hovers around $11.1 million. Here's what we mean:

  • cash: $13
  • current assets: $20 thousand
  • current liabilities: $1.1 million
  • quarterly revenues: $32 thousand (50% decrease year-over-year)
  • quarterly net loss :$166 thousand

It's clear that EXMT are never going to make it on their own and perhaps that's why, they formed another joint venture a couple of weeks ago. This time they teamed up with a company called IMD Companies Inc (OTCMKTS:ICBU) (whose stock, by the way, dropped by around 19% yesterday).

EXMT_logo.pngSince the announcement of the partnership, we've seen numerous press releases and they all sound positive. As we mentioned, the pumpers are optimistic as well but, having in mind EXMT's numerous unsuccessful attempts to start a profitable business, we're not sure if the skies are as blue as some people think they are.

A more immediate danger could be found in the financial statement. We read in it that EXMT issued millions of discounted shares during the reported period both for services, and as a conversion of debt. The aforementioned stock presents a massive opportunity for a profit and if the people who received the shares decide to take advantage of it, the ticker could be in for a rather scary drop. That's why treading carefully and weighing all the risks is absolutely essential.

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