After a huge loss in end-May, this month SPO Medical, Inc. (OTC:SPOM) got the progressive move. Yesterday, the stock hit 
the heavy gain by soaring 157% on the market. The reason for the current price jump is crystal clear – promotions and news.
Yesterday, SPO Medical reported that it has secured the services of NFL Legend Carl Banks to assist in the sales and marketing program of its SPO Wellness(TM) product line. According to the announcement, Mr. Banks will support the company in implementing its mass-market distribution strategy.
Most probably, the positive news have encouraged investors, though SPO decided to re-ensure its market position by promotions. The campaign was on yesterday, when the stock was promoted by White hot stocks, pointing out that the company’s products will finally be coming to market. No compensation for the alerts was listed down, however. Apparently, SPO Medical has held the campaign by itself as there was no third party involved in the promotion. Anyway, the campaign fueled up the stock price additionally and SPO made its progressive move even faster.
SPO Medical is a developer of bio-sensor and microprocessor technologies for use in portable monitoring devices to capture life-enhancing information within four key markets: medical care, sports and wellness, as well as home-care monitoring and security. Last month, the company filed its 10-Q report, which however, was not promising at all.[BANNER]
While total assets of SPO have been decreasing, its liabilities were increasing, as well as the company’s accumulated deficit. At the same time, SPO is still out of revenues and its cash flows are negative.
As stated in the 10-Q, the company’s operations for the three months ended March 31, 2011 resulted in a net loss of $835 and its balance sheet reflects a net stockholders’ deficit of $2,492. Thus, the ability of SPO to continue operating as a going concern is dependent on its ability to raise sufficient additional working capital. However, instead of generating funds the company’s losses keep increasing, while its cash and cash equivalents total $nil.
