ICLD opinions wanted

[AndrewGek]

Greetings traders,
I'm looking for opinions on ICLD. Recent sales growth is impressive and there has been an increase in volume since the last blow out quarter. The history of the 5 year chart is concerning and institutional holdings are only 5%. Looks like a very high risk spec play to me with possible high reward. Whats your fundamentals and/or technical opinion?

[Anthonmr]

This company is nothing but financial hi-jinks, questionable "acquisitions", and stock dilution.

unknown date - Known as Genesis Realty Group.
August, 2008 - Name changed to Genesis Group Holdings (using various tickers GGHO GGHOD, and GGHOE).
January, 2010 - Acquired by it's own subsidiary, Digital Comm Inc, in a reverse merger.
January, 2013 - Name changed to Intercloud Systems.

Early January, 2013 - An OTC stock trading less than 10 cents per share, with average volume less than 300.
January 14, 2013 - Had a 1-for-125 reverse split, creating a new price of $9.00 per share, but the price immediately and consistently went down.
July 31, 2013 - Closing price of $2.50 per share.
August 01, 2013 - Another reverse split, this time 1-for-4, which jacked the price back up to $11.00 per share.
August 06, 2013 - Stock hits a high of $12.50 per share, then starts it's downward spiral again.
October 31, 2013 - Stock uplisted to Nasdaq.
November14, 2013 - Feelings of Deja Vu as closing price is $2.55 per share.
November 15, 2013 - Price rockets up to high of $10.35 on strength of the 10-Q which was filed the prior evening.

Stock has been pretty volatile since, ranging from $6.50 to $19.39 per share. On March 21, 2014 it was revealed company is under investigation for same thing GALE is being investigated for.... allegations they illegally manipulated their stock price by paying stock promotion company DreamTeam to write positive articles about them on (where else but) website Seeking Alpha. Intercloud has also acquired several other questionable companies in the last year and a half, and this in part has been fueling it's so-called growth.

[aotvfdqd81]

BUT sometimes reverse splits can be good for investors when the right situation is present. Most times its not, but there are a few stocks I can think of who did well after a reverse split because they had the formula needed. Let's say for example a company recently cleaned up a debt problem, launched a new product or increased their sales line but the stock is stuck in $1 land and everyone hates their history. Well reverse split it to $10 as it will lower outstanding shares, making any positive EPS technically show larger hopefully sparking a second look from investors who were hesitant before.

QTWW comes to mind. They did a 1 for 4 reverse split last summer, setting the price near 2.50. In the following months it now sits near $10 as positive developments (sales and profit growth) caught a new wave of investors and brought low float momentum traders into the name pushing it higher. Most r/s that end badly are because the company (ex: NEWL) is stuck in a spiraling toxic debt funding or an insider/fund with convertible preferreds or cheap commons who proceeds to kill the price just to get their money out. They probably got a steal on the convertibles/commons price in a PIPE deal and don't care if they crush the little guys in the process. Such is the life of a small cap/penny stock financier. Just know what you're trading. This is why I scream charts over fundamentals on these speculative stocks. I can learn much more about where the price may be headed by reading the chart than by digging for hours into the news/filings/reports etc.

[asudaab]

Thank you, Kenpolean and Blaine for your in depth replies. Your research knowledge is top notch and I'm inspired to take my research to a new level. Free experienced knowledge is why I'm here and greatly appreciated.
I'm likely not to trade the stock as there are much better companies an opportunities.

[Autoxb]

Chart suggests lower prices. I can't find a single upside catalyst.