Monday, October 14, 2013

Three Small Cap Communication Stocks About to Make Some Noise? ACYD, GSAT & SRER

Small cap communications or Internet stocks American Community Development Group Inc (OTCMKTS: ACYD), Globalstar, Inc (OTCMKTS: GSAT) and SearchCore Inc (OTCMKTS: SRER) have been rather quiet lately for investors after making some noise back in September. Nevertheless, all three are still getting some mentions in various investment newsletters or alerts and not because they are the subject of paid promotions. So are these small cap stocks about to make some noise? Here is a closer look:

American Community Development Group Inc (OTCMKTS: ACYD)Has Been Quiet Since September

Small cap American Community Development Group recently merged with Wialan Technologies, a next generation Wireless telecommunications provider which focuses on installations in airports, municipalities, apartment buildings, parks, marinas and other locations that require a superior and more robust communication footprint than conventional WiFi providers. On Friday, Wialan Technologies fell 10.35% to $0.0381 for a market cap of $108.93 million plus ACYD is up 1,905.3% over the past year and down 80.9% over the past five years according to Google Finance.

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What's the Catch With Wialan Technologies? According to various disclosures, no transactions have occurred to mention Wialan Technologies in various investment newsletters. Back in September, Wialan Technologies announced that the board of directors had approved an aggressive strategy to tighten up its share structure and decrease the float up to one hundred million shares starting October 1. The repurchase of stock will continue until the value has increased by 300% as of the close on September 19th. That week was also a busy week for press releases as Wialan Technologies also announced it had successfully demonstrated its Wireless Early Warning System ("WEWS") at Clearwater Beach (the system is intended to improve public safety problems at the beach) and announced a joint venture in Brazil. Since then the company has been quiet. A quick look at Wialan Technologies' financials reveals the most recent financials date from the end of March, before the merger was completed (last August), meaning investors might want to wait for some more financials to appear.

Globalstar, Inc (OTCMKTS: GSAT): A Deal With Amazon.com?

Small cap Globalstar, Inc is a provider of mobile satellite voice and data services. On Friday, Globalstar, Inc rose 2.1% to $1.46 for a market cap of $970.64 million plus GSAT is up 274.4% over the past year and up 92.1% over the past five years according to Google Finance.

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What's the Catch With Globalstar, Inc? According to various disclosures, no transactions have occurred to mention Globalstar, Inc in about ten different newsletters. Moreover, the last news directly from Globalstar, Inc dates from September 19th when the company announced that it will participate in Imperial Capital's Global Opportunities Conference in New York on that day. Coverage was also initiated on Globalstar by Midtown Partners at the beginning of this month as a strong buy plus there have been persistent rumors (repeated on sites like Seeking Alpha) that Amazon.com, Inc (NASDAQ: AMZN) used spectrum controlled by GSAT to test a new wireless network that would allow customers to connect its devices to the Internet. A quick look at Globalstar, Inc's financials reveals revenues of $19,835k (most recent reported quarter), $19,333k, $19,062k and $20,537k for the past four quarters along with net losses of $126,272k (most recent reported quarter), $25,078k, $18,952k and $41,188k. At the end of December, Globalstar, Inc had $58,569k in cash to cover $761,160k in current liabilities and $909,231k in total liabilities for a rather ugly balance sheet – meaning investors are probably betting on some sort of deal with Amazon.com.

SearchCore Inc (OTCMKTS: SRER) Has Recently Launched ManufacturedHomes.com

Small cap SearchCore is a technology-based Internet marketing services company that offers customers an integrated suite of services including media, technology, marketing and information through its industry-focused internet finders sites. On Friday, SearchCore fell 6.19% to $0.150 for a market cap of $5.85 million plus SRER is down 51.6% over the past year and down 40% over the past five years. according to Google Finance.

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What's the Catch With SearchCore Inc? According to various disclosures, no transactions have occurred to mention SearchCorein one investment newsletter with that newsletter actually being last Monday's announcement of an audio interview with CEO Jim Pakulis. At the beginning of the month, SearchCore announced that since its September 18 launch of ManufacturedHomes.com, the number of dealers listed on the site has increased to 2,500 nationwide while the number of floor plans has also increased to over 300 designs. SearchCore intends for ManufacturedHomes.com to be the primary consolidator for all ancillary services in the approximately $3 billion manufactured home industry. A quick look at SearchCore's financials reveals revenues of $102k (most recent reported quarter) and $27k for this year along with net losses of $595k (most recent reported quarter) and $639k. At the end of June, SearchCore had $51k in cash to cover $2,874k in current liabilities and $3,880k in total liabilities. Those financials are not overly exciting and one has to wonder just how much revenue a site like ManufacturedHomes.com will generate the company.

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