Borislav Tonev

Textmunication Hld (OTCMKTS:TXHD) Catches a Positive Wave

by Borislav Tonev April 7, 2016

At the end of last year, Textmunication Hld (OTCMKTS:TXHD, TXHD message board)'s management team decided that they'll use their SMS platform to cater to the needs of businesses working in the health and fitness sector. They contacted some of the companies in the business and they attended the International Health, Racquet & Sportsclub Association convention in Florida. They reckon that they've made the right decision.

In fact, in a shareholder letter from Monday, Wais Asefi, TXHD's CEO, said that by year's end, 90% of the club management software companies will use Textmunication's solutions. Naturally enough, the revenues are expected to grow as well.

Let's hope that Mr. Asefi's predictions turn into reality. The company has been trying to get the SMS platform off the ground for a while now, but it's pretty clear from the latest 10-Q (which, by the way came out about two months after its due date) that success is still a long way away. Here's what the report for the third quarter of 2015 looks like:

  • cash: $7 thousand
  • current assets: $15 thousand
  • current liabilities: $1.6 million
  • quarterly revenues: $80 thousand
  • quarterly net loss: $934 thousand

The company has indeed been struggling, but by the looks of things, investors really believe that the problems are coming to an end.

The stock was already climbing before the aforementioned shareholder update, but once it came out, it gave TXHD a stronger push which means that the ticker is now sitting at $0.0835 per share – more than twice the value recorded at the end of last month.

This, coupled with the increasing trading activity means that more and more people are putting their money on the line.

We're wondering if those people are aware of the fact that during the first nine months of last year, TXHD issued a grand total of 10.3 million shares as a conversion of debt at rates ranging from $0.002 to $0.009, and that between September and February, a further 3 million shares saw the light of day at $0.006 for the same reason.

In February, Mr. Asefi tried to convince everyone that the dilution has been taken care of and that “short-term lenders are converting to long-term partners, but because of the lack of a more recent report, we can't be sure if the shareholders really are safe.

Whatever the case, keeping your eyes peeled and treading carefully is extremely important.

Comments 2

1. Guest
July 20, 2016, 03:20AM

Quotes Damn auto correct.
Should have been : Search wais asefi$.STARTUP?Z_INDV_ID=431548&Z_IL_LIC_NBR=0C58023

Read about the enforcement action.

2. Guest
July 20, 2016, 03:11AM

Quotes Search wait Azeri on the California dept of insurance.
I would not trust him.
What was the 2.8 million in consulting fees last year?
Find out who it went to and for what before investing.

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