Hot or Not? Three Small Cap Stocks Getting Attention: SOUL, GSAT & SHPR

Small cap stocks Soul and Vibe Interactive Inc (OTCBB: SOUL), Globalstar, Inc (OTCMKTS: GSAT) and Poly Shield Technologies Inc (OTCBB: SHPR) have been getting some attention lately in various investment newsletters or investor alerts with at least two of these stocks being the subject of some sort of paid stock promotional or investor relations type of activities. With that in mind, just how hot are these three small cap stocks for investors or traders? Here is a quick reality check:

Soul and Vibe Interactive Inc (OTCBB: SOUL) Recently Gave a Shareholder Update

Small cap Soul and Vibe Interactive is a publisher of games and games-related content for consoles, mobile devices and personal computers. Soul and Vibe Interactive specializes in the creation of original intellectual properties and has extensive experience licensing world-renowned brands from influential companies. On Friday, Soul and Vibe Interactive rose 4.42% to $0.295 for a market cap of $4.61 million plus SOUL is down 89.6% since the start of the year according to Google Finance.

What's the Catch With Soul and Vibe Interactive? According to various disclosures, transactions of $20k and $25k have or will occur to mention Soul and Vibe Interactive in various investment newsletters. Near the beginning of the month, Soul and Vibe Interactive issued a letter to its shareholders saying that the third quarter and the first month of fourth quarter 2013 proved to be "very exciting." The CEO noted that he personally cancelled 64,459,292 shares of his own common stock and that the company also completed a 1-for-3 reverse split. In addition, Soul and Vibe Interactive has maintained its "valuable" video game console publishing and development agreements with Microsoft and Sony plus its licensed brand agreement with General Mills. However, a quick look at Google Finance reveals that Soul and Vibe Interactive has no revenues; net losses of $0.16M (most recent reported quarter), $0.25M, $0.02M and $0.01M for the past four quarters; and $0.01M in cash to cover $0.21M in current liabilities at the end of last June – financials that are not particularly exciting.

Globalstar, Inc (OTCMKTS: GSAT) Keeps Issuing Shares….

Small cap Globalstar is a leading provider of mobile satellite voice and data services to commercial customers and recreational consumers in more than 120 countries around the world. On Friday, Globalstar fell 1.01% to $1.97 for a market cap of $1.48 billion plus GSAT is up 545.9% since the start of the year and up 795.5% over the past five years according to Google Finance.

What's the Catch With Globalstar? According to various disclosures, no transactions have occurred to mention Globalstar in various investment newsletters. Last Friday, Globalstar filed an 8-k to disclose an agreement with Hughes Network Systems LLC, a subsidiary of EchoStar Corporation, which allowed Hughes (at their sole option) to elect to receive shares of the company's common stock (at a 7% discount based upon a trailing volume weighted average price calculation) in lieu of cash related to certain milestone payments under Globalstar's 2008 contract with Hughes for ground network equipment and software upgrades and satellite interface chips. The filing also mentioned that:

On November 15, Hughes exercised an option to receive approximately $4.3 million in Globalstar voting common stock. On November 18, Globalstar issued 3,166,474 shares of voting common stock to Hughes at $1.35 per share in a private placement. On December 11, Hughes exercised its remaining options to receive approximately $10.1 million in Globalstar voting common stock. On December 13, Globalstar issued 6,334,141 shares of voting common stock to Hughes at $1.60 per share in a private placement.

A quick look at Globalstar's financials reveals revenues of $22.55M (most recent reported quarter), $19.84M, $19.33M and $19.06M for the past four quarters along with net losses of $204.97M (most recent reported quarter), $126.27M, $25.08M and $18.95M. At the end of last September, Globalstar had $6.64M in cash to cover $142.63M in current liabilities and $675.69M in long term debt for one ugly income statement and balance sheet.

Poly Shield Technologies Inc (OTCBB: SHPR) Makes a Divestiture and Will Open a R&D Facility Soon

Small cap Poly Shield Technologies develops and markets environmental, pollution emissions, energy saving, corrosion and durability solutions to a worldwide market. On Friday, Poly Shield Technologies rose 2.68% to $1.15 for a market cap of $216.19 million plus SHPR is up 150% since the start of the year and up 114,900% over the past five years according to Google Finance.

What's the Catch With Poly Shield Technologies Inc? According to various disclosures, a promoter has disclosed that a company they are an "investor in expects to receive an advertising contract from Digital Development Group in the near future, creating a potential conflict of interest." About a week ago, Poly Shield Technologies announced it had entered into a divestiture and share purchase agreement by and amongst Poly Shield, Poly Shield's wholly owned subsidiary New World Technologies Group, Inc. and Octavio Viveros. Poly Shield Technologies sold to Mr. Viveros all of the issued and outstanding shares of NWT in exchange for a royalty on 5% of NWT's gross revenues, expiring on December 31, 2018, plus NWT may buy out the Royalty at any time for $1,000,000 without credit for amounts previously paid under the Royalty. Otherwise, it should be noted that Poly Shield Technologies' research and development facility in the British Virgin Islands is scheduled to begin operations by the end of this year. A quick look at Poly Shield Technologies' financials reveals revenues of $334k (most recent reported quarter), $4k, $10k and $0 for the past four quarters along with net losses of $275k (most recent reported quarter), $331k, $432k and $287k. At the end of last September, Poly Shield Technologies had $357k in cash to cover $2,580k in current liabilities. So perhaps investors should revisit Poly Shield Technologies and its financials early next year.