Todor Pichurov

4Cable TV International Inc (OTCMKTS:CATV) Slows Down, Still Climbing

by Todor Pichurov July 2, 2015

After a monster session that dragged 4Cable TV International Inc (OTCMKTS:CATV, CATV message board) out of double zeroes and sent it 397% up, yesterday the stock slowed its roll considerably, but still made a sizable green push. By the closing bell CATV was another 29% up, on volume that was slightly lower than Tuesday's but still far above the company's average.

So why did CATV spring out of obscurity and steal the limelight over the last few sessions? Sadly, it's next to impossible to pinpoint the reason. The company last issued an official press release back in February and its most recent filing dates back to late May.

In the absence of stock pumps targeting CATV, it's safe to say that the ticker is not moving on any observable triggers, which makes those massive swings all the more susceptible to volatile pullbacks. There is very little in the company's latest financial report that should inspire such fiery enthusiasm about its stock. Here is what CATV last reported as of March 31, 2015:

  • $42 thousand in cash
  • $894 thousand in current liabilities
  • $112 thousand in Q1 net sales
  • $178 thousand in Q1 net loss

CATV is no stranger to issuing toxic debt with fixed percentile discounts upon conversion attached to it. The report's convertible debt section contains the names of some notorious toxic financiers such as JMJ Financial, LG Capital and Typenex. The conversion discounts which CATV furnished to those who lent the company money in the last six months reach 45% of the lowest closing price multiple days prior to conversion.

Seeing ho CATV was barely traded over the last few months and that it was scraping lows of $0.003 just a few days before its swing up the charts, traders would do well to consider the risks involved before trying to chase the ticker up the chart.

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