In October 2019, Clancy Systems International, Inc. (OTCMKTS: CLSI) surprised the market by moving more than 40 million shares in only one trading session. The company’s share price dynamics are also impressive. From below $0.01, the stock price spiked up and hit the $0.10 mark before moving down around the $0.05 level. The most interesting is that all happened in less than four months. The recent release of several quarterly reports seem to be behind the market move.
See below the company’s stock chart before we offer more information:
Founded in 1984 in Colorado, Clancy Systems is focused on developing and marketing parking ticket writing systems, internet industry guides, and internet payment remittance systems. The company’s customers are universities, car rental companies as well as laundry facilities in the United States.
NEW QUARTERLY REPORTS – THE TOTAL AMOUNT OF LIABILITIES DECLINED
As of June 30, 2019, the company reported $1.3 million in cash, marketable securities worth $1.09 million, and total assets of $4 million. Besides, the total amount of liabilities are worth only $14,400. The total amount of assets is approximately equal to what the company reported in 2008. As of September 2008, the total amount of assets was $4.2 million. However, the amount of liabilities was way above the company’s current level. As of September 2018, the company reported total liabilities worth $0.7 million. The decrease in the amount of liabilities explains the recent share price spike.
For the twelve months ended September 30, 2018, CLSI reported revenue of $1.38 million, gross profit of $0.98 million, and cash flow from operations worth $0.38 million. These figures are way better than the company’s numbers for the nine months ended June 30, 2019. Let’s hope that Clancy Systems can report more revenue at the end of the year 2019.
EQUITY STRUCTURE – NO TOXIC FINANCING
Clancy Systems has a simple capital structure; no convertible notes and no preferred stock. The number of shares outstanding is ~213 million, and the management is authorized to issue 800 million shares. With this capital structure and no toxic financing, most individuals in the market may not fear stock dilution. Ihub members made positive comments in this regard:
“Let’s just wait and see what happens. It’s one of the cleanest shells around with no debt. No notes” Source: Ihub
That’s not all. Some Ihub participants are also expecting the company’s stop sign to be removed soon. Of course, it would be a positive event. However, we don’t know whether removing the sign so quickly will be possible. In any case, if it happens, the market may see a growing new demand for the stock:
“When Liz say all documents whas send last friday to OTCIQ for the start of remove stop sign, and all documents are correct, It take not long (3-5 days) before we see a PINK current sign on OTCM…only with this fact and rumor of news the pps must turning north now.” Source: Ihub – Winnaar123
Currently trading with a market capitalization of $9.3 million, assets worth $4 million and cash in hand, Clancy Systems is a name to be followed closely. In less than four months, the management decided to release new quarterly reports and a new annual report. If Clancy Systems continues to release beneficial announcements, we don’t see why the share price would decline from its current mark. Let’s stay tuned.
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Disclosure: We hold no position in Clancy Systems either long or short, and we have not been compensated for this article.