4Cable TV International Inc (OTCMKTS:CATV) has been receiving a lot of positive attention from investors in the market. Recently, Typenex Co-Investment filled a form 13G to open a new position at 4Cable TV International. As per the details, Typenex now owns 9.99% of 4Cable TV. The company provides customized solutions to TV operators, which covers repair, upgrading and testing of solutions in the CATV sector. The recent move by Typenex shows that it believes in the company’s business model.
Apart from the big new position, 4Cable TV has been experiencing enormous trading sessions, with some sessions registering a rise of up to 397%. The upward movement of the stock is very surprising, since the company has been silent for quite a long time now. There has not been any news from the company since late May, when it filed its latest 10-Q. Furthermore, there have been no pumps targeted at the stock and the company’s financial condition is not encouraging either.
In its latest 10-Q, 4Cable TV reported just $42,000 in cash and $112,000 in sales, while the liabilities stood at $894,000. The financial situation of the company resulted in a Q1 net loss of $178,000. Added to this, the company’s stock is severely diluted and the company continues to let its situation deteriorate. Furthermore, a deeper look at the 10-Q reveals that the company has experienced a greater net loss in its 1Q2015, as compared to its 1Q2014.
This can also be attributed to the fact that there has been a decline of 53% in its net sales. However, the company was able to improve upon the cost of goods sold, reporting a decline of 46%. Unfortunately, this was countered by an increase in administrative expenses of the company. With the company hosting such a large number of red flags, it remains a wonder why the investors are so interested in the stock.
4Cable TV International Inc (OTCMKTS:CATV) finished the July 8 session at a share price of $0.005, after trading 18.66 million shares and gaining 25% in share value.