RSS

$ICLD – Thoughts on Intercloud Systems Inc

May 5, 2017

Penny Stock

As a invested trader in InterCloud Systems Inc., I have some thoughts here on this Penny Stock play that helps my emotions when I see my investment move negatively.

Looking back a little at some “press release” history – on October 13, 2016, $ICLD  announced its plan to improve its balance sheet by reducing its debt as well as begin to sell or divest itself of “non-core” assets.

  • On October 20, 2016, $ICLD announced an awarded contract of $2.1 Million.
  • On November 3, 2016, $ICLD announced an additionally awarded contract of $ 1.5 Million.
  • On November 22, 2016, $ICLD announced another new contract valued at over $2.0 Million.
  • On December 1, 2016, $ICLD announced yet another $1.0 million in new contracts and continuing to reduce debt.
  • On December 20, 2016, $ICLD once again, announces $600,000 more in new contracts.
  • On January 12, 2017, $ICLD started the year off with an additional $200,000 in new contracts.
  • On February 9, 2017, $ICLD was awarded another $400,000 in new contracts.
  • On March 1, 2017, $ICLD sells off its High Wire Business division,
    • receiving another $4.0 million in cash
    • and another $900,000 to be paid in six months (September 2017).
    • All to be applied to reduce debt.

Something to note here – if you look at the press release on February 9 – $ICLD shows it’s ticker as (OTCBQ:ICLD) and in the next release on March 1 – as (NASDAQ:ICLD). However, on March 10, the ticker reads (OTC:ICLD) – this may be nothing, but it caught my attention.

  • On March 10, 2017, $ICLD is awarded yet more contracts worth $2.4 Million.
  • On March 16, 2017, $ICLD is awarded again, with another $1.6 Million in contracts.
  • Lastly, on April 27, 2017, $ICLD sells off another “non-core” asset,
    • receiving another $2.0 million, while still retaining 19.9% ownership in the new company.

Let’s be clear here – “non-core” assets are assets that are either not essential or simply no longer used in a company’s business operations.

I like the fact that Mark Munro has invested $249,998.55 of his own money into $ICLD since November of 2015. To break that down a little – his average price per share he paid was $0.63. According to his insider transaction starting in November of 2015, he purchased 398,653 shares. Please understand, those shares are not all he’s purchased. His total shares purchased is 1,812,373.  At current prices –  his investment is only worth around $45,000. His purchase back in June 2016, cost him $50,000 and then again the prior November 2015, purchased another $50,000 worth. Taking this into consideration – it would behoove him to get the share price higher than the current $0.025.

Taking all this in – do I expect to see $ICLD jump to $1.00 a share? No, not unless there is a major pump coming. However, could we see $ICLD move back into the $0.04-0.06 range seems plausible.  As the earnings report comes out in the next few days, it would be nice to see a steady climb back to $0.03’s or slightly higher.

Latest: Unfortunately, we could not get stock quote ICLD this time.

, ,