XcelMobility Inc (OTC:XCLL) is one of the latest hits on the OTCBB. A number of promoters were paid to draw attention to the newcomer, and pump up its share price. The aggregate budget for the effort seems to be half a million dollars.
Yesterday XCLL closed down 2.06% at $0.95 on approximately 327 thousand shares. However, the stock traded higher throughout the day. This far today, XCLL has added another 5 cents.
The aforementioned $500 thousand were paid to Capital Financial Market (CFM), but some of it will go towards the promotional effort and CFM will get what’s left. Different newsletters were paid different amounts.[BANNER]
Some of them have published an advertisement saying XCLL is giving you a chance for “an easy 409% profit.” However, traders and potential investors should do their due diligence.
XCLL’s business is conducted through CC Mobility and CC Power, a Hong Kong and a PRC company respectively. An 8-K form filed by XCLL explains the relations between the companies. Prior to a share transaction XCLL was a shell.
The same 8-K provides some information about the performance of CC Power. It turns out that the company hasn’t turned a profit in the first half of 2011, and the revenues for the period are $39 thousand. This was a 9.67% decrease compared to the same period of 2010. The decrease was “primarily due to decrease in revenue from our Internet accelerator software.”
As a whole, the financial situation of the company at that time was not very promising. This doesn’t mean it couldn’t theoretically what the tout e-mails suggest one day, but traders should have a look at the numbers before they do something rash and lose a lot of money.
