Small cap stocks often make huge gains in a small period — and InterCloud System (ICLD) is the latest example. ICLD stock up around 45% in this morning’s trading.
InterCloud Systems announced that underwriters would be able to buy an additional 187,500 shares of common stock at a public offering price of $4 per share. For small cap stocks, that’s a great sign for investors.
This will bring the expected total gross proceeds from the offering to some $5.75 million (before fees and other offering expenses payable by ICLD). It’s one of several small cap stocks that are making big gains.
ICLD stock is making big gains on a number of fronts: Last week ICLD announced that revenue increased 448% to more than $16 million in the third quarter — with a net income of $1.3 million. From the ICLD earnings report:
“The increase in revenue is attributable to organic growth and the acquisitions closed during the past year.
Gross profit for the third quarter of 2013 totaled $5.5 million, compared to $1.2 million for the third quarter of 2012. Gross profit for the nine months ended September 30, 2013 totaled $13.4 million, compared to $2.3 million for the third quarter of 2012.
Net loss for the nine months ended September 30, 2013 was $1.1 million, or $0.49 per share, compared to a net loss of $1.7 million, or $4.76 per share, for the nine months ended September 30, 2012.”
“Our third quarter results reflect the integration of our completed acquisitions, and the success of InterCloud’s cross selling plan,” said Mark Munro, Chief Executive Officer of InterCloud Systems, in a statement.
“InterCloud now offers a full set of cloud and managed services as well as professional services focused on providing end-to-end network solutions for both carriers and enterprises. We continue to be well positioned for growth into 2014.”
ICLD offers cloud and managed services, as well as consulting services and voice, data and optical solutions to assist its customers.
Other services include engineering, design, installation and maintenance services to support the build-out and operation advanced enterprise, fiber optic, Ethernet and wireless networks.