Borislav Tonev

Orbital Tracking Corp (OTCBB:TRKK) Manages a Green Session

by Borislav Tonev April 8, 2016

Yesterday, Orbital Tracking Corp (OTCBB:TRKK, TRKK message board) gained almost 15% and it closed the session at $0.14 on a dollar volume of just under $109 thousand. Sounds good, but the people who jumped in last month when the ticker was hovering around $0.40 probably aren't terribly ecstatic about the performance.

Dr. Philip Frost, a well known name in the investment community and a TRKK shareholder probably isn't very happy with the stock, either. Let's' see if the ticker can cheer him up a bit.

Last week, the company published its 2015 annual report. The figures look like this:

  • cash: $963 thousand
  • current assets: $1.6 million
  • current liabilities; $1.1 million
  • quarterly revenue: $4 million
  • quarterly net loss: $2.1 million

Sure, the figures are not exactly perfect. In fact, TRKK is still a long way away from reaching profitability, but the huge 63% year-over-year revenue jump does show that the company is getting somewhere.

A continuous sales increase and more decent reports might give the stock the chance to run. Provided, of course, there are no pumpers to ruin the party.

Over the last few weeks, TRKK has been rather extensively covered by the promotional newsletters. The effects on the stock haven't been terribly positive and if the promotion continues, we might see further wild and unpredictable swings.

The thing is, when the pumpers are around, there are usually people who are in a position to sell a significant number of shares on the open market and profit from the increased liquidity. Is TRKK an exception to the rule?

Last year, a substantial number of preferred share saw the light of day in exchange for cash and as a conversion of debt. The preferred stock isn't traded on the open market which means that the people who got the aforementioned shares can't sell them immediately. What they can do is convert the preferred shares into common ones and then liquidate them. And with the A/S count recently raised to 750 million, there's not much to stop them from doing that.

Comments 1

1. Guest
December 03, 2018, 12:20AM

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