Small cap stocks Urban Ag Corp (OTCMKTS: AQUM), Family Room Entertainment (OTCMKTS: FMYR) and Medient Studios Inc (OTCMKTS: MDNT) were all rewarding investors and traders alike on Friday with surges of 92.31%, 88.4% and 33.33%, respectively. Of course and according to the laws of physics, what goes up can also come right back down for a hard landing or blow up in the face of unwary investors. So what will these three small caps do for investors this week? Here is a closer look:
Urban Ag Corp (OTCMKTS: AQUM) Has a History Of Surges Followed By Ebbs
Small cap Urban Ag Corp operating subsidiaries serve a wide customer base that includes telecom customers such as Verizon, Motorola, Alcatel-Lucent, Time Warner and general contractors serving national customers such as Wal-Mart, CVS and Gulf Marine. On Friday, Urban Ag Corp surged 92.31% to $0.0025 for a market cap of $120,174 plus AQUM is down 98.7% over the past year and down 99.9% over the past five years according to Google Finance.
What’s the Catch With Urban Ag Corp? According to various disclosures, a transaction or transactions of $2.5k have or will occur to mention Urban Ag Corp in various investment newsletters. Last Thursday, Urban Ag Corp announced today that Terra Asset Management, Inc, an operating unit of its wholly owned subsidiary Green Wire Enterprises, Inc., had been awarded a microwave expansion project to install 28 microwave sites and related services for a tier one carrier in the Midwest. Strangely, there was a one day time lapse after the news hit the financial wires before shares started surging. Urban Ag Corp also surged earlier in the month after issuing a press release to announce it had negotiated installation and service agreements with (unnamed) national chain and big box stores for the Austin and San Antonio areas. Shares then drifted back down to the level they were at before the announcement. Urban Ag Corp only announced the closing of its acquisition of Green Wire Enterprises earlier this year and a quick look at the company’s financials reveals revenues of $164k (most recent reported quarter), $221k and $29k for the past three quarters along with net losses of $448k (most recent reported quarter), $325k and $3,765k. At the end of June, Urban Ag Corp had $29k in cash to cover $12,572k in current liabilities. So my guess is that shares of Urban Ag Corp might drift back down to where they were earlier last week.
Family Room Entertainment (OTCMKTS: FMYR) Surges on No News Since Last January
Small cap Family Room Entertainment has been involved in various aspects of the motion picture entertainment industry and currently has a small Library of films in distribution. Family Room Entertainment is looking at producing new films and potential entertainment projects/venture or it may seek business opportunities in other industries as well as possible acquisition and/or merger candidates. On Friday, Family Room Entertainment surged 88.4% to $0.013 for a market cap of $296,566 plus FMYR is up 550% over the past year and up 225% over the past five years according to Google Finance.
What’s the Catch With Family Room Entertainment? According to various disclosures, no transactions have occurred to mention Family Room Entertainment in a couple of investment newsletters. I am not seeing any news for Family Room Entertainment since last January when the company announced a strategic alliance with Institutional Investors Consulting Company (IICC) to develop new business opportunities and assist in capital raising efforts. Shares surged only to quickly drift back down again and level off. The most recent financials for Family Room Entertainment date from last March on Google Finance and it looks like the company is not to active at the moment. So baring any additional news, we can probably expect shares to fall back to where they were early last week.
Medient Studios Inc (OTCMKTS: MDNT) Produced an Award Winning Film
Small cap Medient Studios is an entertainment content creation company with a strong presence in North America, Europe and India. On Friday, Medient Studios surged 33.33% to $0.440 for a market cap of $17.64 million plus MDNT is down 42.1% over the past year according to Google Finance.
What’s the Catch With Medient Studios? According to various disclosures, one transaction of $3k has occurred to mention Medient Studios in an investment newsletters. Last Thursday, Medient Studios announced that "Yellow," produced by the company’s CEO, was awarded “Best Film” at the Catalina Film Festival (CFF) on September 22nd. Last August, Medient Studios announced it had executed a $5 million credit facility with TCA Global Credit Master Fund, LP. to finance development of motion pictures as well as the Print and Advertising costs for US domestic release of films. A quick look at Medient Studios financials reveals revenues of zero (most recent reported quarter ended June 30, 2013), $1,950k (March 31, 2013), $3,268k (Dec 31, 2012) and zero (Sept 30, 2012) for the past four quarters along with a net loss of $121k (most recent reported quarter ended June 30, 2013), net income of $561k (March 31, 2013) and $17k (Dec 31, 2012) and another net loss of $120k (Sept 30, 2012). At the end of June, Medient Studios had $52k in cash to cover $4,988k in current liabilities. Given the hit or miss nature of the film industry, Medient Studios would be more of a speculative small cap bet.