QuamTel, Inc. (OTC:QUMI) aims, though its key subsidiaries DataJack and WQN, at improving ‘the cornerstone in the next-generation Internet-based telecommunications and data transfer technology systems.’ Instead of taking advantage of the high-potential telecommunications industry, however, the company has been incurring substantial losses quarter after quarter. No wonder that QUMI has now become one of the most heavily pumped stocks on the OTCBB marketplace with half a dozen promotional emails worth a total of $8 thousand having just reached our database.
In a nutshell, what we have got for QUMI for the last ten weeks are 15 promotions and more than 100 emails. While most of them could be deemed successful in absolute terms, the overall outcome is crystal clear, i.e QUMI is trading well below both the MA(50) and MA(200) and the volume is declining. Last Thursday, in particular, QUMI came in at $0.38, up 5.56% from its previous close. Barely 20,277 shares of common QUMI stock changed hands, which barely covers 20% of the company’s average daily trading turnover.
Established in 1996, QuamTel, Inc. is primarily focused on providing pre-paid telecommunication products and services worldwide on no-contract, no-credit-check terms. On Feb. 22, the company announced to have received the first purchase order for delivering mobile broadband services using distributor ProutyCo’s vast network containing in excess of 100 thousand carriers and service providers nationwide. The company also revealed a 46% revenue increase for Jan 2012 on an annual basis.
Even though QUMI’s revenue stream might be on the increase, it was not always the case. In fact, QUMI reported a net loss of $2.6 million for the quarter ended Sept. 30, 2011, i.e six times higher than the total revenue generated in the same quarter. The company also recorded a working capital deficit of $1.2 million and zero cash.
As long as QUMI continues to linger in the red in terms of financial health, its stock will remain highly vulnerable to paid advertising efforts, which, as you have all seen so far, have had limited impact on the market value of the company’s shares.
