In the following article, I would like to point out several things about Cx2 Technologies, Inc. (CXTO.OB) which operates and sells 220 MHz digital wireless data communications technologies in the commercial and public safety/emergency disaster relief sectors. The company gave 1 million shares to Wall Street Resources as a reward for stock promotional campaign. Was this company unattractive to investors? Let’s analyze annual reports from 2007 and 2008:
– Current assets of Cx2 Techs crashed from $255,000 to $3,000.
– Liabilities overgrew more than twice in the same period.
– Gross profit of the company went down as well: in 2007 it was $20,000, while a year later -$152,000.
– If earnings per share ratio is counted, you can see that it has gone up slightly, i.e. from -$0.445 to-$0.102. However, it is still negative.
All in all, you can see that the performance of this company does not look positive, and there are no signs of recovery seen. For this reason, the stock price jump up by almost 13% does not look realistic but rather reminds me of a stock promotional campaign.
