Low Volume Penny Stocks To Watch: Quamtel (QUMI)

Shares in the penny stock of Quamtel Inc. (OTC: QUMI) are looking to bounce off recent lows this week as the the stock closed at $0.38, up 5.56%, on Thursday. The stock price of Quamtel (QUMI), an emerging mobile broadband service provider, has dropped 30.28% thus far this year. For some reason though, it is one of the “Major” penny stock picks available this week.

QUMI posted some decent numbers in their last 10-Q filing with Gross Profits of $140,680  off of Revenues of $502,576 for the three months ended September 30, 2011. The big issue is that they converted their debt by issuing 9 million Restricted Shares back in August which are eligible for trading now that the six month restriction period has ended. Also, they issued 16.5 million common shares in the third quarter for various reasons. (see 10-Q here)

QUMI Stock Snapshot:

Market Cap: 19.67M
52-Week High:
(Oct 31, 2011) 0.77
52-Week Low:
(Jun 14, 2011): 0.15
Avg Vol (3 month): 145,719
Shares Outstanding: 51.76M
Float: 38.23M

QUMI Volume/SMA History:

5 Day Avg Vol: 17,221
10 Day Avg Vol: 25,905
20 Day Avg Vol: 32,339
30 Day Avg Vol: 105,227
50 Day Avg Vol: 167,245

5 Day SMA: 0.3868
10 Day SMA: 0.3844
20 Day SMA: 0.3912
30 Day SMA: 0.4201
50 Day SMA: 0.4883

Quamtel makes money through its subsidiaries. The operating subsidiary companies are:

• DataJack, a provider of no contract mobile broadband services, and
800.com, a powerful array of network resources and the best in class Toll-Free service features for consumers and businesses; with the convenience of global routing.

The one product from QUMI that sparks a great deal of interest is the company’s tablet, which is named the Qtab. This is an affordable alternative to devices from Apple, Blackberry and Samsung.  The Qtab’s one–touch access to pre–loaded and downloadable apps via Android Market puts your most frequently used tools, just a touch away.

Bottom Line: The penny stock, QUMI, is at a 3 month low. Even at 38 cents where it is currently trading, volume has dried up considerably. It will most likely trade on some momentum being as how it is so closely related to the smartphone market and could be considered an undervalued tech company.

Just take note that the current price is in-line with both the 10 and 20 day SMA. Any significant jumps will be momentum trading. If you do trade, don’t get stuck holding at above 40 cents.

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