Borislav Tonev

Cloudweb Inc (OTCMKTS:CLOW) Punched to the Ground

by Borislav Tonev February 29, 2016

Out of the lasts seven sessions, only one ended in the green for Cloudweb Inc (OTCMKTS:CLOW, CLOW message board). The last two hits (a 54% drop on Thursday followed by another 36% crash on Friday) were particularly severe which means that in total, CLOW has managed to plummet from over $0.60 per share all the way to less than $0.12 in a matter of just ten days. Is anyone surprised by this?

Well, at $0.60 per share, CLOW's market cap stood at a hair under $190 million and that sort of valuation doesn't really befit a small penny stock company that has just acquired a UK-based web hosting provider that nobody has ever heard of.

More worrying is the way the ticker got to where it was on February 16. It was pushed there by a $220 thousand pump campaign that was organized by Finest Penny Stocks – the same outfit that brought the America Resources Exploration Inc (OTCMKTS:AREN) and Agrieuro Corp (OTCBB:EURI) disasters.

Finest Penny Stocks, considered by many to be one of the most influential penny stock promotional firms out there appears to be losing its touch. Those of you who have been following the OTC Markets know that the AREN and EURI campaigns lasted for quite a bit longer and savvy traders had plenty of time to make some quick and easy money. With CLOW, however, they didn't get that chance.

Basically, the crash was pretty much written on the wall. But where will CLOW go next?

There are a couple of things that will decide its fate. First of all, the pump will need to stop and judging by the fact that the latest emails hit investors' inboxes before the start of Thursday's session suggests that this might just be happening.

Then, CLOW will need to release the financials of its newest subsidiary. The merger was closed at the end of last month which means that the seventy-one day period for the filing of the results won't be over until April 9. A more decent set of figures might just support the stock for a more prolonged period of time. Unless, of course, the SEC decides to intervene and put an end to the promotion. Judging by the Commission's recent efforts, however, this doesn't seem very likely.

Last but by no means least, CLOW's future will depend on a few unnamed individuals who purchased more than 60 million shares for just over $60 thousand about a year ago. Despite the recent crash, these individuals are still looking at a pretty huge profit sitting right in front of them. If they decided to take it, CLOW will find itself in serious trouble.

About seven minutes into today's session, the stock is traded at just over $0.09 (a further 21% in the red).

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