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By Boyan Angelov
Nov 24, 2014

Ubiquity, Inc. (UBIQ) Rises On Pump

Ubiquity, Inc. (UBIQ) marked a sharp increase in the charts last week. The ticker gained 123% in price, going from $0.78 on November 18 to $1.74 on November 21. The reason for UBIQ's success can be attributed to the ongoing promotion campaigns around the stock. There have promotions from multiple parties, including Stock Rock & Roll, HiddenGemStocks.com, Penny Stock Money Train, and StockMister, just to name a few. Compensations have varied from $2 thousand to $15 thousand.

UBIQ stock has been on an upward spiral, leading to a 42.62% price increase on Friday on a volume of 324,059 shares trading hands. The ticker took off right at the opening bell of the first session for the current trading week. While UBIQ stock is on the rise, investors should not let the excitement win them over too easily, as paid promotions, also referred to as pumps, have been known to have devastating consequences on a stock.Ubiquity, Inc. stock chart

The very name suggests that the objective of these campaigns in to push the stock price up. While this may be good short term, there is no way to predict for how long the positive effect will last and how the stock will be affected in the long run. On many occasions, penny stock companies have been unable to sustain the sharp increase in price and have plummeted once the campaigns ran their course.

What chances does UBIQ have of sustaining the promotion activity and maintain its current price? Looking at the venture's recent history, keeping a stable price level has not been a strong side of Ubiquity. UBIQ stock was traded at over $8.00 just a few months ago. The last couple of months were devastating for the company, as it went from over $5.00 in early October to fall well under the $1.00 mark.

Not to disregard Ubiquity's financial stats, a look into the venture's latest 10-Q for the quarter ended September 30, 2014 is due:

  • Cash: $255.1 thousand
  • Total current assets: $2 million
  • Total current liabilities: $4.1 million
  • Revenues: $29.5 thousand
  • Net loss: $5.1 million

While UBIQ's asset base has gone up significantly, the venture's liabilities have also been going up and are still over twice as greater in amount. The company has been rather unsuccessful in its sales department in the last few periods and has incurred an alarming net loss from operations.

UBIQUbiquity has used share issuance for various purposes. Since the outset of the fiscal year, the company raised $6,070,578 from the issuance of 6,616,372 shares of common stock. UBIQ paid for $6,820,806 worth of services with the issuance of 999,872 shares of common stock. In the current quarter, the company has issued 2,112,428 shares of common stock for cash proceeds of $645 thousand.

With the ongoing promotion campaigns and the large amounts of shares that have traded hands recently, investors should do their own due diligence on the company before investing in UBIQ stock.

Average Reader Price Target For UBIQ:

Going Down!
0.0174

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Article Comments:

Guest wrote: 6:09 pm Mar 18, 2015
sprocket coming soon ? anticipated launch of Sprocket : first quarter, then second quarter, then 3 quarter an
d so on ? and this announcement since years is this a scam company ?
Guest wrote: 6:10 pm Mar 18, 2015
sprocket coming soon ? anticipated launch of Sprocket : first quarter, then second quarter, then 3 quarter an
d so on ? and this announcement since years is this a scam company ?

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