mPhase Technologies, Inc. (OTC:XDSL) Explodes Promoted by a Former Employee
11 Nov 2010

Working for mPhase Technologies, Inc. (OTC:XDSL) was probably not that delightful, and even made some of its employees move to another industry, that of the penny stock promoters. Yesterday, the shares of mPhase exploded for a second time this month, again promoted by a former employee of the company who received part of his salary in the form of stocks and now hovers as the “Wall Street Grand” throughout the world of the sub-pennies.

XDSL shares have started the month flying high on the opening of a three-month promotional campaign. That campaign promises to be a special one though, as the President of the promoting firm was previously employed by mPhase Technologies. Yesterday, the third part of that promo contract took place, XDSL shares broke their upper trading band, surging 27.47% up and closing the market at $0.0116 on an incredible trading volume of 20.38 million shares.

According to the promotional disclosure, the company has agreed to pay its former employee $50,000, or $5,000 per week, for 10 weeks of investor awareness services. Along with the cash compensation, the promoter got 5 million shares of XDSL restricted stock to complement his previous employee compensation of 1 million restricted shares.

It is not known when these restricted shares would become eligible for sale on the open market, but the chart shows well enough that after the share price was almost doubled and rose from $0.008 to $0.015 on the first promo attack, some trading profits have been realized. Another evident thing, is that mPhases business is not exactly profitable and the announced along with the stock promotion new product developments could hardly impress someone.

The company had at the end of June this year minor $228,000 cash reserves and a heavy $10.5 million long-term debt. Mphase business has not been profitable on an yearly basis in the past five years, the total accumulated loss since inception in 1996 is $194 million. The net loss for the first half of this year was almost $3.5 million, compared to $3.1 million for the second half of last year.

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