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ByJim Bloom
Posted on February 12, 2018
News of how third-party promoters have affected the trading of Central Wireless Inc (OTCMKTS:CWIR) stock is now public. However, it remains to be seen what thecentral-wireless-inc-otcmktscwir-has-its-reputation-on-the-line final results of any possible investigation will be. With the level of work and innovation management has put in during the last few months, investors and analysts will hope that all issues are resolved quickly as quickly as possible.
CWIR Daily Chart
Company Profile
Central Wireless, Inc. was originally founded in March 1987 and previously called National Corporate Systems, Inc. The firm engages in building and developing telecommunications towers for broadband and cellular transmission as well as other wireless communication signals. In recent times, the company has sought to acquire ongoing businesses or assets that it would be capable of developing. It operates using a business incubator model.
In the last year, the firm was able to broaden and enhance its business model to exhibit its new aggressive growth strategy of acquisition in various industries that are interlinked.
For more information on the company, you can go through our previous post here.
Recent Developments
In November 2017, Central Wireless, Inc. today reported that it had chosen to retain Pondel Wilkinson Inc. to act as its investor relations and strategic public relations firm. Pondel Wilkinson’s role would be advice on communications matters as the firm reorganizes its corporate focus under new leadership as an acquisition holding company. In addition to this, PondelWilkinson would also be expected to serve as its liaison to Wall Street and investors, develop communications surrounding mergers and acquisitions, take care of all media relations along with providing corporate communications guidance in association with an anticipated corporate name change and listing to a major exchange.
Recently appointed CEO and Chairman, Harry Orfanos explained that management was just beginning to build its team and expect that PondelWilkinson would be a valuable resource, as they transform the company and implement the new growth strategy. PondelWilkinson which has been in existence since 1968 has a solid network within Wall Street and can provide a full suite of communications services for developing as well as already established privately-owned companies across a wide spectrum of industries.
In the same month, Central Wireless, Inc. provided and official announcement stating its views on the recent developments in its stock price and trading performance. Central Wireless Inc. remains assured that the major driver behind the amount of interest from investors in its shares is the attractiveness of its business model, the high level of management experience and high expectations of its long-term performance. The firm had already released some statements which covered some of the positive developments with the organization and is widely believed that this was a driver to investors buying the stock at the time of the announcement of such positive firm-related news.
According to the statement, it was around this period the firm became aware of the intent of penny stock marketers to promote the shares, possibly for another pump and dump scheme or any other unknown malicious purpose. All of this was reportedly unknown to and unaffiliated with the firm. Management only began to observe these attempts in early November and its continued recurrence. Some of the promotional activities were carried out when companies quoted on OTC markets publish news, which often influences the prices of these companies’ stock.
It also claimed that some third party share promoters examine the market, talk about these shares, which they usually come across already on them to their followers, and make claims to have caused the move as such, soliciting payments from the subscribers and other parties interested. The firm has gone to make it clear that they do not approve such unauthorized and unverified promotional activities as they can cause a significant number of investors to buy our stock. Rather, management is of the belief that the main reasons for the level of investor interest in the stock is its management’s experience to execute and acquisition business model.
Financial Performance
Close observation of the firm’s statement of comprehensive income reveals that the firm is very much in the growth stage of its lifecycle. It had no declared revenues in 2014, negligible in 2015 and 0.14 million in 2016. However, the firm recorded a larger net loss, due to increased selling, general and administrative expenses along with other costs.
The firm is very highly leveraged when observing its rations, with current assets of $17000 and debt (short and long-term) of $46,000. This amount in absolute terms is not crushing and it expected that further investment would be made to expand the firm’s operations. It negative retained earnings, however, remain a source of worry, with a value slightly above $12 million.
Conclusion
With the stories about third-party promoters still being investigated, it is advisable to stay observant and buy or sell only based on well researched, verifiable information.
We will be updating our subscribers as soon as we know more. For the latest updates CWIR, sign up below!
Disclosure: We have no position in CWIR and have not been compensated for this article.
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