Beacon Enterprise Solutions Group, Inc. (BEAC.OB) is the provider of information technology and telecommunications products and services to mid-market commercial businesses, state and local government agencies, and educational institutions in the US. The company’s stock is currently trading at $1.39 after the rise by 17%. The volume as of the last trade was almost 200,000. However, it is still unclear why the stock of the company is rising, while nothing positive is seen in its performance.
In the fourth quarter, the company experienced the operating loss of $1,095,000, while gross profit tumbled down by 33% in one year, i.e. from $733,000 in the first quarter to $485,000. Another bad sign is the long-term debt of $1,697,000 and the increase in liabilities by almost 80%.
All of the facts introduced above do not seem to be able to make the stock rise. However, the most possible explanation is the deal of Beacon Enterprise with StockStars.net and Emerging Markets Consulting who got $37,500 in total for the service of stock promotions.
Under these circumstances, investors should be careful judging about the company from the performance of its stock. Financial data should be also analyzed despite the fact that stock has been rising for some time.