Monday, November 18, 2013

Promoted Small Caps Set to Sink, Swim or Surge This Week? MCGI, UMDI & DKAM

Last Friday, small cap stocks MedCAREERS Group Inc (OTCMKTS: MCGI), USmart Mobile Device Inc (OTCMKTS: UMDI) and Drinks Americas Holdings, Ltd (OTCMKTS: DKAM) were all over the place with the first two sinking 54% and 48.05%, respectively, while the last one rose 10.81%. It should be mentioned that all three small cap stocks have been the subject of paid promotions albeit none of these stocks have been over promoted. So where can investors and traders expect these stocks to head this week? Here is a quick look at what you might expect:

MedCAREERS Group Inc (OTCMKTS: MCGI) Gets Additional Commitments to Join Its Subsidiary

Small cap MedCAREERS Group aims to develop and build value through its wholly-owned subsidiary Nurses Lounge, Inc., an online professional network and communication source for nurses that offers a 21st century solution to recruitment and information that cannot be accomplished on a static nursing school or association website. On Friday, MedCAREERS Group sank 54% to $0.0575 for a market cap of $3.03 million plus MCGI is up 161.4% since the start of the year and down 93.9% over the past five years according to Google Finance.

z?s=MCGI&t=1m&q=l&l=on&z=l&a=v&p=s&lang=

What's the Catch with MedCAREERS Group Inc? According to various disclosures, a transaction or transactions of $17.5k has or will occur to mention MedCAREERS Group in various investment newsletters. Earlier this month, MedCAREERS Group announced that the Nurses Lounge had returned from the American Association of Colleges of Nursing fall meeting in Washington DC with commitments from approximately 60 nursing schools and associations to join and utilize the network. Otherwise, MedCAREERS Group has largely been quiet except for SEC filings. A quick look at MedCAREERS Group's financials reveals revenues of $2k (most recent reported quarter), $6k, $6k and $8k for the past four quarters along with net losses of $263k (most recent reported quarter), $186k, $522k and $177k. At the end of July, MedCAREERS Group had $77k in cash to cover $1,178k in current liabilities. So it remains to be seen whether adding 60 nursing schools and associations to the Nurses Lounge will generate MedCAREERS Group any real revenues – let alone net income.

USmart Mobile Device Inc (OTCMKTS: UMDI) Has Been Quiet Lately

Small cap USmart Mobile Device is an integrated China-based designer, manufacturer and distributor of advanced technologies spanning smartphone and semiconductor components. Through the September 2012 acquisition of Jussey Investments, the company has become a one-stop solution provider of smartphone components serving OEM customers spanning local China mobile phone companies and established telecom carriers. On Friday, USmart Mobile Device sank 48.05% to $0.08 for a market cap of $3.17 million plus UMDI is down 38.5% since the start of the year and down 59% over the past five years according to Google Finance.

z?s=UMDI&t=5y&q=l&l=on&z=l&a=v&p=s&lang=

What's the Catch With USmart Mobile Device Inc? According to various disclosures, a transaction or transactions of $15k has or will occur to mention USmart Mobile Device in various investment newsletters. However, USmart Mobile Device has not issued any news beyond filings since last May when it reported net revenue for the quarter ended March 31, 2013 of $14.5 million verses $42.4 million for the same period last year plus net income of $888.3k thanks to a one-off profit from the disposal of fixed assets in the amount of $1.9 million. It was also noted that with the acquisition of Jussey on September 28, 2012, USmart Mobile Device has diversified its business interests from a memory components distributor to an IDH (Industrial Design House) focusing on smartphone products. A quick look at USmart Mobile Device's financials reveals revenues of $25,008k (most recent reported quarter), $14,460k, $38,118k and $49,488k for the past four quarters along with a net loss of $78k (most recent reported quarter), net income of $888k, a net loss of $4,036k and net income of $1,410k. At the end of June, USmart Mobile Device had $1,748k in cash and $1,738k in receivables to cover $33,485k in current liabilities. Given the last press release about financials, the balance sheet and the fact that USmart Mobile Device is based in China, investors might want to be a little cautious.

Drinks Americas Holdings, Ltd (OTCMKTS: DKAM) Increases Its Distribution Footprint

Small cap Drinks Americas Holdings is the exclusive United States broker for leading premium authentic Mexican beers currently present in over 32 states and is on target to be the leading broker for this growing category in each of the markets in which it operates. All the beers are brewed in Mexico's third largest brewery, Mexican owned Cerveceria Mexicana. On Friday, Drinks Americas Holdings rose 10.81% to $0.0041 for a market cap of $120,890 plus DKAM is down 96.8% since the start of the year and down 97.9% over the past five years according to Google Finance.

Top 5 Canadian Companies To Own For 2014

z?s=DKAM&t=2y&q=l&l=on&z=l&a=v&p=s&lang=

What's the Catch With Drinks Americas Holdings, Ltd? According to various disclosures, a transaction or transactions of $3k has or will occur to mention Drinks Americas Holdings in various investment newsletters. Last Wednesday, Drinks Americas Holdings announced that its authentic Mexican craft beer, Day of the Dead, is now offered across brand concepts of international restaurant group Richard Sandoval Restaurants (RSR) which has over 35 restaurant concepts spanning Arizona, California, Colorado, Florida, Nevada, New York, Virginia, Washington DC as well as in Dubai, Serbia, Qatar and Mexico. In addition and earlier this month, Drinks Americas Holdings announced that Day of the Dead is being rolled out nationally in over 259 Cost Plus World Market stores nationwide. A quick look at Drinks Americas Holdings' financials reveals the lates financials date from the end of January and revenues of $1,205k (most recent reported quarter), $1,931k, $1,290k and $1,860k for the past four reported quarters along with net losses of $2,043k (most recent reported quarter), $9,015k, $438k and $236k. At the end of January, Drinks Americas Holdings had $295k in cash to cover $5,192k in current liabilities. Given that those financials are almost a year old, investors might want to wait for the company to get caught up.

No comments:

Post a Comment