COASTAL INTGRTD SVCS (OTCMKTS:COLV) has been experiencing a series of ups and downs, mostly downs, since Stocktips started to cover it. COLV is a very volatile stock and the company itself has not been doing very well. The company does not have a developed product in the market, meager finances and an unclear business model. Consequently, investors have been proceeding with caution.
However, all is not lost, in one of its better decisions the company had recently acquired Simply Lids to become one of its subsidiaries. The new company added a much needed product to the company’s portfolio, but COLV would still have to come up with an exceptional marketing strategy to make the most of the new product. Without proper marketing the proprietary lids would not be able to gain a good grasp of the market. Unfortunately, COLV’s meager finances do not leave enough room for an aggressive marketing strategy.
However, if the news from Stocktips is to be believed, the company is going to be granted $4.5 million from Laluna Services, to invest in its marketing budget. Now it just remains to be seen if the news is true and how well would COLV utilize the budget. Additional compensation to the company’s poor financials would come through an order of 2.5 billion lids annually to Havi Global Solutions. Even though this deal alone would not be enough, but at least COLV can have a reliable source of annual revenues.
In its 1Q2015 the company revealed that it has just $794 in cash and assets, no revenues and a quarterly net loss of $19,000. Looking at the bleak financials, it is a wonder how COLV is able to command a market cap of over $33 million. COLV needs to do something about its finances and fast; else it can soon go bankrupt.
COASTAL INTGRTD SVCS (OTCMKTS:COLV) traded a mere 70,000 shares during the June 10 session, to close at $0.110 after registering a rise of 15.91% in share price.