DubLi, Inc. Stocks Suddenly Sold Off

Michael Hansen, DubLi, CEO


While the price for DubLi, Inc. has not fallen too far, the last few days came in with exceptionally high selling volumes, as investors decide to shed the pink-sheet, after long months of sideways drifting in a tight range. DUBL has a limited information warning on its OTC markets landing page, so the explanation of the sudden selling is problematic. DUBL moved back just around 3% to $0.092, on dollar volumes of above $525,000.DUBL1126.png


But an 8-K from November 21st points to a possible reason: an unregistered sale of securities. The CEO of the company, Mr. Michael Hansen, sold back to the group 30 million shares, received at par.


The sale price was stipulated at 10 cents, and Mr. Hansen received payments in cash. It turns out the company itself was indebted by $700K to the CEO. Mr. Hansen was also in the habit of being a creditor to the company, only to receive several payments in the form of underpriced shares.VPIG1126.png


Now, DUBL has above 371 million shares outstanding, a prodigious amount, and the dilution of Mr. Hansen is barely noticeable, but it is a significant red flag for the company's quality. With all those financing activities, DUBL has an intriguing balance sheet, containing:

  • $6.8 million in cash
  • $23.8 million total current liabitilies
  • $151 million in revenues
  • $2.16 million net loss
  • 371 864 326 shares outstanding

No wonder the big numbers, since DUBL works with cashback programs and generally rides the robust trend of online shopping and servicing transactions. But alongside all this, there are serious doubts surrounding the company.

Investors' forums are rather inactive, with opinions a few months old, and do not give a clear sentiment toward DUBL. Yet the stock is worth watching, as higher volumes may trigger a more active move. In case this is just a one-off glitch, the main problem with DUBL is its long-term inactivity, both in price movements and in volumes.

Even better-quality e-commerce tickers, such as VirtualPiggy, Inc. are having their tough times. In the fall, VPIG had a few months under pressure before making a more cheerful trend in November.

ImageWare Systems, Inc. is also struggling, just below $1.70, after it tried and failed to hold over the $2 levels.

If you still believe DUBL has a potential to go on, keep in mind that the low price makes volatility very probable, and avoid investing unless you can afford to lose the investment.

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