Todor Pichurov

DubLi Inc. (OTCMKTS:DUBL) Grinds in Place

by Todor Pichurov August 26, 2014

The mysterious and precarious climb of DubLi Inc. (OTCMKTS:DUBL) ran in a bit of a hurdle in Monday's session. The stock closed red despite picking up in share volume again. DUBL ended the session 1.1% down on 2.1 million shares traded.

We have previously covered the company and we are still as confused when it comes to the actual catalyst for DUBL's excursion up the charts. This type of movement is usually characteristic for stocks targeted by pump campaigns but this is not the case with DUBL.

The situation is made even more confusing by the fact that the company is delinquent in its filings. DUBL is stamped with the Pink Limited Information on OTCMarkets. Despite the availability of 8-K filings, the most current financial report from DUBL covers Q2 of 2012. This is not a typo, it's actually financial information that is more than two years old now.

Here is the brief numbers rundown of that mid-2012 quarterly:

  • $6.8 million in cash
  • $23.8 million in current liabilities
  • $4.1 million in quarterly revenues
  • $3.2 million in quarterly comprehensive loss

The revenue figure is a restatement in an amended 10-Q from an original $151 million. Management figured out sales of the company's proprietary gift cards did not really comprise revenue under GAAP so the figure was adjusted down to $4.1 million.

What's more troubling is that the company received a formal warning by the SEC that it needed to get its filings in order. Despite the SEC letter containing warnings about revoking DUBL's registration and suspending it from trading altogether, the company missed the deadline it was given. Obviously, the company's efforts to 'initiate communication' with the SEC were productive as DUBL is still around, even if it's shrouded in mystery.

With no recent press releases from the company, the uncertain state of DUBL and its lack of filings make for a risky pick that investors should research very thoroughly on their own before making a decision.

Comments 1

1. Guest
December 17, 2014, 06:07PM

Quotes You really don't know the catalyst?

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