When promotions and news get together to form a catalyst for the day, more often than not a trading frenzy is to follow. Almost as the case for Mobile Data Corp.(OTC:MBYL). The usual daily trading volume for the last three months ranged somewhere between 5k and 300k shares changing hands. To be precise – just a few sessions enjoyed trading activity above 100k. This Tuesday, the number at the end of the session was 5.8 million. 
It is actually only the increased trading volume that raises interest. It might seem that news came out, followed by promotions, to inspire traders for the things that followed. Not exactly. Actually, it was a strong start of the session, way before anything was sent to mailboxes or issued in the press. There were 4 promotions for the day, all sent by one promoter and paid with $50k by a third party. The first hit mailboxes around 09:50, the last – just after 6 PM way after the market has closed. What is more, the press release by the company also did not come before 4 PM. So, all in all, while promotional activity had an impact on traders, it was a day on which the trading did not have any objective catalyst to fuel it. One question that might come to mind – why the rush for this stock on no news? Another – what comes today, when there is news at hand?
The above is a question yet to find its answer. One thing is for sure – there is the possibility today of people doing the due diligence instead of acting spontaneous upon reading their e-mails. If so, one thing that should be used as a source of objective information is the balance sheet. The latest to look at is the quarterly statement covering a period with an end-date April 30th, 2011. Among other figures, it includes the following: [BANNER]
- $618 in cash;
- $49k in current assets;
- $83k in current liabilities;
- $944k in accumulated deficit;
- $51k in net loss;
- $0 in revenues;
Not the kind of figures that inspire optimism, but also certainly not ones that point into the direction that the company is doomed. A good word in this case would be “uncertainty”. Uncertainty that surrounds the trading activity, the share price, and the way in which operations are sustained with so little cash at hand. Many questions that make today`s session an interesting one, but an unpredictable one as well.
