Will Mobile Data Corp.(OTC:MBYL) hit the 300% increase again? This is the question from the promotion, and thus the question traders are asking themselves today. It is also the wrong question when considering this company as a potential investment. So lets take a closer look and go over the actual issues at hand.
First of all, the SEC Commission still has Mobile Data on file as a mining company, which was the previous main line of business up until 2010. After this last venture did not prove as profitable as intended, the management decided to go for the smart phone applications market. So they entered into an asset purchase agreement for mobile data technology for smart phones. The cost was $5 thousand and 1 million shares. Strangely cheap for a future market leader technology, but quite expensive if the opposite opinion for it is true.
Presently, Mobile Data Corp. boasts about its ongoing relationship with RIM and the Blackberry applications that the company develops for this famous brand. To be precise – tracking devices, that are installed on the smart phone in order for a manager to track employees and their whereabouts at any point of time. Mobile Data also proudly presents similar applications for Blackberries, that help mothers monitor their children. Now, while you are asking yourself if there is one child on the planet that uses business smart phones, this is just one side of the story. Taking the time to check the SEC filings and news from 2010 would bring out even more interesting issues at hand.
Yet, the news is not all bad. There is some light in the tunnel. It is the tracking technologies for managers to use. After all, Blackberry enjoys high interest among business clients. There are many managers and team leaders out there who will just love to have a simple system that shows where exactly are the sales representatives of the company right now. [BANNER]
Yet, this is not exactly the next big thing in the industry. All sorts of GPS systems are already on the market, so it is questionable if Mobile Data Corp. has a place under the sun. This is yet to see, and until then caution should be applied, as investment in some stocks resembles walking with sunglasses in the mist.
