Yesterday the promotions for Polar Wireless Corp. (OTC:BCDI) stock continued, but their impact seems already weak. The new “monster press release” of the company got again alerted to traders by a stock promoter, but instead of jumping up BCDI share price fell again to 60 cents in the session.
BCDI closed yesterday at $0.70 for a share, with a 5.41% decline in the share price. Yet, for a company showing extreme divergences between PR statements and filed to the SEC financial reports, BCDI holds a market cap of $47.6 million, which inevitably urges traders to ask what is behind, and to find out that it is only news and promotions that sustain that value.
In its latest 10-Q report, filed at the end of March, the company does not mention to have any developed or marketable products, not to speak about clients. Its cash position at the end of January was $0. Surprisingly however, this month BCDI keeps issuing press releases about signed distribution contracts and partnership agreements to distribute its “Breakthrough Roaming Chip” in Pakistan, the United Arab Emirates and North America.
Maybe this month BCDI actually managed to get a unique product, build a solid client base, and even open an office in Russia, all of that without spending a single dollar. Yesterday’s press release announced that the company will introduce a 24/7 customer help service to augment its voice, data and SMS center in Moscow.
In order to be completely objective, one has to consider that Polar Wireless actually has a business plan. Again according to the SEC filing, the company plans to offer security software and intends to develop and operate a website. Further, the management states that BCDI main revenue stream will be derived from subscribers who will pay monthly fees to obtain security threat updates and computer protection software. To set all that going, the management will need $28,000, according to their financial plan.
Unfortunately, as of the date of the latest report no investor had agreed to provide that huge amount. Furthermore, the company’s existent website, just like its press releases, points that BCDI is in a completely different area of business, namely mobile telecommunications. The “news” is being spread by the company’s PRs and by the stock promoters since January this year, and if true it should have been covered also in the latest financial report.
