A breath of fresh air, made possible with the help of an extra hand – this is the situation for Hotcloud Mobile Inc.(OTC:HOTM) as the end of the week approaches. The question is – what comes next?
It has been a disastrous period of two months. From almost $1 per share, to $0.1 per share. The latter share price is a result of the Tuesday trading session. Moderate trading activity leading to this all-time low in the stock price. Wednesday was different, however. Wednesday was a day of support.
Yesterday, the rise in the share price was almost 20% for the day, supported by 600k shares exchanging hands, the session closing at $0.125 per share. Two main catalysts were responsible for the hype. The first one is the company announcement about an agreement with Empire Film Group to create a new social media application. The second one is the promotional newsletters that hit mailboxes that same day. One in the morning, one around lunch time. Paid promotions, costing $20k. Together with the press release, they did their job to take HOTM out of this all-time low stock price. The question remains, though. [BANNER]
In just 2 months HOTM has lost 90% of its value. During that period there were also promotions, there were also positive sessions. The end result is clear though, and it is far from optimistic. Now, one thing that could potentially reverse this negative trend is better results in the quarterly statement. The second quarter for HOTM is already over (July 31st), so a 10-Q should be expected shortly. Until then, uncertainty is likely to prevail on the stock market.