Cloudweb Inc (OTCMKTS:CLOW) Issues First Press Release

Source: Wired

Everyone has been wondering when we would get the first press release from Cloudweb Inc (OTCMKTS:CLOW). The stock hit the OTC markets by storm as the Elite Penny Stock Group's new pick earlier this month. It was pretty impressive to see millions of shares traded on no news. Shares took off due to the power Elite has in the market. For those that are not familiar with Elite, they are the most powerful newsletter group on the OTC markets. Their websites include finestpennystocks.com, smartstockchoices.com, smartstockwinners.com, BestAmericanStocks.com, and many others.

What makes Elite so powerful is that they have a massive database of names and followers. They even have other newsletters following their picks and then trying to pass off Elite picks as their own. Elite will blast their list several times a day trying to get as many buyers into their stocks as possible. For momentum players, this works until Elite shuts off their servers. Then the stocks fall back to where they came from.Elite’s last two picks were AgriEuro Corp (OTCMKTS:EURI) and America Resources Exploration (OTCMKTS:AREN). Both started at pennies and then exploded. EURI ran as high as $2.09 and AREN hit $1.30. However, both came crashing down after Elite stopped promoting both names and they got hit with the dreaded skull and crossbones from OTC markets, which CLOW has been hit with already.The first press release from Cloudweb said that the company signed a contract to enter China. CLOW said that it had entered into a credit card processing agreement with a Hong Kong provider enabling it to process orders from customers based in China through UnionPay. The highlight of this agreement is the affiliation with UnionPay. UnionPay is the top form of payment in the country as it is the primary method by which Chinese customers transact. As of 2016, UnionPay exceeds Visa in transaction volume and is the largest bankcard settlement organization in the world.As soon as the press release was released, Elite and its group of websites started emailing its members about the news. Finest Penny Stocks said:

"The company just announced that it's going to enter China and they signed an agreement that allows them to process chinese clients in the country now. This is huge news because China is a massive market that is mostly untouched. The cloud boom in China is just starting. Shares of CLOW could go bananas following this news. You gotta move fast! Being in the Chinese market could make CLOW grow exponentially. If you didn't buy CLOW yet make sure you think about buying it right this second so you can get it before it jumps!"

Really the press release was all fluff and no substance. There was no mention of revenues, customers, or how CLOW is going to tap into the Chinese market. The reality is that the cloud business is highly competitive and CLOW offers nothing unique. According to Cloudweb:

"Cloudweb, Inc is a technology provider to small businesses, Web design professionals and individuals, delivering cloud-based products and outcome-driven, personalized Customer Care. The Company operates domain marketplace, where its customers can find that piece of digital real estate that matches their idea. The Company provides Website building, hosting and security tools to help customers construct and protect their online presence and tackle the changing technology landscape. It also provides applications that help them connect to its customers, manage and grow their businesses and get found online. It has designed and developed a set of cloud-based technology products that enable its customers to establish a digital presence, connect with their customers and manage their business operations. The Company's products include domain, hosting and presence, and business applications."

Currently trading with a market cap of $639 million, CLOW has minimal revenues and assets. It’s stock price is being driven entirely by the Elite Penny Stock Group promotion. The minute they stop, the stock will take a dump and stockholders will be left holding the bag. This is what happened with Elite’s last two promotions EURI and AREN. Trade it, but don’t be left holding the bag. For continuing coverage on CLOW and our other hot stock picks, sign up to Insider Financial today and get our free penny stock newsletter!Disclosure: We have no position in CLOW and have not been compensated for this article.