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Is Mobicard Inc (OTCMKTS:PTOP) Due For A Rebound?

Is Mobicard Inc (OTCMKTS:PTOP) Due For A Rebound?
Written by
Jarrod Wesson
Published on
February 15, 2018
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Mobicard Inc (OTCMKTS:PTOP) commenced the year 2018 on the wrong note. The stock price lost almost one-sixth of its market capitalization in just two months. The management and shareholders should not believe it.We don't understand it either, as PTOP was working in the right direction.Firstly, a lawyer was helping the company in becoming SEC compliant. Also, the last operational developments were interesting. PTOP was launching a new Cryptocurrency Reward Program, and card sign-ups were up by over 933% in fiscal Q1. On the top of it, a private equity fund was funding the new ventures.It was like a great story. In fact, it was much appreciated by the market. In December, the shareholders were making five times their money thanks to the great news. Have a look at it: Two months chart for PTOPWhat's going on? Was the stock overheated? In this article, we will try to assess the bearish market reaction. Also, we will review the new announcements as well as the reaction of the management.Before we proceed further, let's revise the background of PTOP. The company is based in Danvers, Massachusetts. It is a technology based mobile solutions provider serving business professionals with its proprietary SaaS mobile business card platform, branded C2A Mobicard.Check the following video for more info:The New DevelopmentsThe company did not defraud the market. In December, it continued its Cryptocurrency Reward Program. The first step was buying the following domain names, among others:

  • freemobicards.com
  • freemobicoin.com
  • mobicoinmarket.com
  • freemobicoupon.com

There is more.Firstly, PTOP is going to launch MobiCoupon in February 2018. This is very critical information. In February or March, the company will know if there is demand for MobiCoupon. The market will be ready. Announcements about estimated success will be studied. The share price could run.Additionally, PTOP said the following about its cryptocurrency:

"The Company plans to reward MobiCoupon shares with MobiCoins. Additionally, it will provide businesses with a simple and affordable pricing model that is far superior to anything offered in the market today." Source

The Director of Business Development, Christopher Esposito, was very positive. Check his words:

“We believe that big business will accept MobiCoins as they have accepted Bitcoins as form of payment” Source

This new info was received in December. Does it justify the valuer erosion? Apparently not, it is, in fact, the opposite. Let's keep reading before we wrap some conclusions.On January 3, 2018, the market got to know the new coin. Readers can check the quotes on this website: XChain Information - Mobicard Inc OTCMKTS:PTOPFor the ICO pros, the market capitalization is $23 million. Its price was equal to $0.008, whereas its total supply is 100 million. The price seems cheap, as the coin is just starting. The gains could be large if the coin becomes well known. Additionally, the downside seems small from here.We will see what happens. But, it is critical to point out the following. The company has already a business behind. This is not like Bitcoin, which is, for the moment, not accepted in many shops. Mobicoin has already a long list of associated partners. They accept MobiCoupon shares, thus will accept MobiCoins. Keep this fact in mind, read the following:

“We have received a plethora of inquiries related to purchasing MobiCoins” said Christopher Esposito, Director of Business Development

What's the reason behind the success?The reward program includes a five year and lifetime subscription. Subscribers are rewarded as follows:- 250 MobiCoins for its annual subscription of $79.99.- 2,500 MobiCoins for its 5-year subscription of $499.- 10,000 MobiCoins for lifetime membership of only $999.These new plans are increasing the demand for MobiCoins. In theory, high demand is followed by price increases. We will see what happens. In any case, we will stay tuned to PTOP. Perhaps, the management will push the right bottom and make its price pop.Finally, on January 8, 2018, the market got to know how to acquire MobiCoins. In particular, we got to know how to acquire Lifetime Subscription to MobiCard. The most significant was not that, rather it was the appreciation of the coin. Read the following: Acquiring MobiCoin - Mobicard Inc OTCMKTS:PTOPThe delay in filing its financial statementsThere is a caveat on the stock. Remember the promises made last year? In 2017, PTOP said to be working towards becoming SEC compliant. The company seemed quite serious since a lawyer was hired for this purpose. In January, in this regard, important information was released. PTOP announced that they are late in filing its financial statements. It is not the best way to becoming SEC compliant.Finally, the auditing firm BF Borgers CPA PC will conduct a full 2-year audit. This is good news, but it will not solve anything if the filings are late.If the news were beneficial, why did the stock decline?Our opinion is as follows. The information in December was exciting. Thus, many market participants bought stock creating an astonishing share price jump. It happens all the time. However, greed moved the last part of the upward trend. Many market participants only entered the stock for a short-term profit. They bought and bought until they were completely alone in the market. Then, the share price touched 52-record highs and commenced a decline. When there is nobody else entering buy orders, these declines can make a lot of pain.The company is operating as usual. It did not contribute to the spike, but it was due to the activity of some market participants. Thus, it was simply a technical retracement.Does it mean that this is a buy-the-dip opportunity? We are not sure about it. But, one thing seems sure. When the share price was at $0.06 mark, the company's fundamental value was approximately equal to the current value. Keep this critical information in mind.ConclusionCurrently trading with a market cap of $1.2 million, PTOP is an exciting story among small caps. Readers should wait until the company uploads its financial statements. The stock will be less risky once it is done. Alternatively, the new ICO brings a new way of getting exposure to PTOP. Check it out too.Be sure to check out our coverage on PTOP.We will be updating our subscribers as soon as we know more. For the latest updates on PTOP, sign up below!Disclosure: We have no position in PTOP and have not been compensated for this article.Image courtesy of Glenn Simmons via Flickr

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