Mobiquity Technologies (NASDAQ: MOBQ) stock is up 82% this morning. Which is impressive for a rational and reasoned view of MOBQ stock would have us assuming that it’s bust. So, why up 82%? Perhaps there’s some rumour of there being a rabbit that the management are about to pull out of a hat. Which could even be true. But we think a much more likely explanation is that someone has started the rumour in order to trigger a momentum trade. One that is almost certainly near over already. Because anyone reading that balance sheet is going to have serious doubts about the survival of the business beyond, well, depending upon how you read it perhaps this year and possibly this day.
The business line: “Mobiquity Technologies, Inc., together with its subsidiaries, operates as an advertising technology, data compliance, and intelligence company in the United States. It provides advertising technology operating system platform includes adserver, demand side platform, advertisement quality tools, analytics dashboard, engine, advertisement prediction and delivery tools, supply quality tools, private marketplace tools, audience and location targeting, reports, an advertisement software development kit, prebid adaptor, contextual targeting, identity graph capabilities, cookie syncing, and the updated version of a quality and security tools that blends artificial intelligence and machine learning-based optimization technology which automatically serves advertising and manages digital advertising inventory and campaigns.”
OK, that’s all very cool, it’s just that they’ve been doing this since 1998 and have burnt through well over $200 million since then.
Mobiquity Technologies stock price from Google Finance
It’s worth pointing out that they’re down to that only 55% up in the time it took to type this far down the page. So, yes, momentum trade using the early morning thin markets to run it.
For a look at the accounts shows that even at this price they might be overvalued. $150k in cash, current debts (ie, suppliers) nearing ten times that, very little in the way of customer receivables. In fact the only reason the balance sheet stands up is capitalised software development costs and goodwill as positives on it.
So someone’s having a little fun playing with the stock price but it’s not something any of us want to get involved with.
