Anastas Gegov

Is Cloudweb Inc (OTCMKTS:CLOW) Done?

by Anastas Gegov February 25, 2016

The stock of Cloudweb Inc (OTCMKTSL:CLOW, CLOW message board) has been heavily pumped for nearly a month now and things were paying off at first. The ticker registered an impressive gain over the course of a single session and the daily volumes increased significantly. Unfortunately, after reaching a price of around 60 cents per share CLOW began to hesitate.

 

This is not that big of a surprise. The surprising thing here is how some investors got fooled by pumpers once again, despite the fact that FINRA and the SEC have warned them about such stocks over the years. Some traders were so busy pushing the market cap of CLOW above the $100 million mark that they seem to have forgotten to check the fundamentals of the company.

 

The first, and most obvious thing to look at, would be the balance sheet of the company. Here is a quick example of the contents of CLOW’s report for the third quarter of the past year.

 

  • cash: $52 thousand
  • current assets: $62 thousand
  • current liabilities: $146 thousand
  • quarterly revenues: $19 thousand
  • quarterly net loss: $40 thousand

 

Does that look like something that should be found in the balance sheet of a company worth hundreds of millions of dollars? Rhetorical question, it certainly isn’t, but there were still those who were willing to put their hard-earned money on it. Although we can’t say for certain if they were really that “hard-earned” considering the manner in which they are being thrown away.

 

A pump campaign with a budget of more than half a million dollar is something that a certain person of interest with large amounts of heavily discounted shares would pay for. Another thing that you should keep in mind is that the company’s CEO and sole executive officer, Mr. Liao Zhi De is at the helm of Letterston Investments Ltd., a company that acquired 250 million of CLOW’s common stock on January 18,2016.

 

In  light of all that, does it really come as any surprise that the ticker is already 52.31% in the red in today’s trading after another 9.22% loss that it recorded yesterday. The daily dollar volumes recorded since the beginning of the blatant pump campaign suggest that the person or persons behind it have already made up for the money they spent on it and are most likely reaping huge profits.

 

This, however, might be the moment from which CLOW begins to fade into oblivion after burning through the savings of some gullible investors that will likely learn their lesson and stay away from pumped pennystocks in the future.

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