Hot or Not? Three (Promoted) Small Cap Stocks: ATTD, AXLX & USRC

Small cap stocks Attitude Drinks Inc (OTCMKTS: ATTD), Axiologix, Inc (OTCMKTS: AXLX) and Unisource Corporation (OTCMKTS: USRC) have all been getting some attention lately in investment emails or investor alerts thanks in part to paid promotions. And while there is nothing wrong with properly disclosed paid promotions or investor relations activity, such activity can backfire on unwary investors or traders. With that in mind, here is a closer look at all three small cap stocks to help you decide whether they are truly hot or not:

Attitude Drinks Inc (OTCMKTS: ATTD) Says It Has Steady Growth and Consumer Appeal

Small cap Attitude Drinks is a beverage brand development company with a pure milk recovery drink, exploiting recent scientific evidence, confirming the benefits of milk and protein as an exercise recovery aid. On Friday, Attitude Drinks rose 6.45% to $0.0033 for a market cap of $104,834 plus ATTD is up 230% over the past year and down 98.7% over the past five years according to Google Finance.

What's the Catch With Attitude Drinks Inc? According to various disclosures, transactions of $1k, $1.5k, $2.5k and $12k have or will occur in the future to mention Attitude Drinks in various investment newsletters. About a week ago, Attitude Drinks announced the continued growth in order flow from its largest customers as the Florida, New Hampshire and Massachusetts markets have continued to demonstrate steady growth and consumer appeal. Attitude Drinks also launched sales of Phase III®, its revolutionary new protein recovery drink, through its newest partner in Maine, Pine State Trading Co., who it signed on as a distributor back in May. A quick look at Attitude Drinks' financials reveals revenues of $75k (most recent reported quarter), $44k, $115k and $120k along with $345k (most recent reported quarter), $2,518k, $590k and $3,989k. At the end of last June, Attitude Drinks had $36k in cash to cover $7,199k in current liabilities and $9,455k in long-term debt. Those financials aren't particularly great and Attitude Drinks would have intense competition from big beverage names – meaning its going to be a speculative bet for investors.

Axiologix, Inc (OTCMKTS: AXLX) Announces Earnings and Financing

Small cap Axiologix is an International Technology and Services Organization focused on delivering cloud-based Products and Services to small and medium sized businesses primarily in the United States and to operators globally. On Friday, Axiologix closed at $0.0003 for a market cap of $307,400 plus AXLX is down 72.7% over the past year and down 99.9% since July 2010 according to Google Finance.

What's the Catch With Axiologix, Inc? According to various disclosures, transactions of $1k, $1.5k and $15k have or will occur to mention Axiologix in various investment newsletters. Last Thursday, Axiologix announced that on September 12, it and all of its wholly owned subsidiaries closed a Senior Secured Revolving Credit Facility of up to $5 million with TCA Global Credit Master Fund, LP to provide operating capital and fund acquisitions. As a condition of the facility, Axiologix agreed to register its shares of common stock with the SEC, through the filing of a SEC Form 10, within three months of the closing. In addition and last Monday, Axiologix announced revenues of $901,673 for the year ended May 2013 versus $187,139 revenues for the previous year plus a net loss of $1,035,157, down slightly from the net loss of $1,047,607 reported last year. Not really covered in the press release was the fact that Axiologix had $7k in cash to cover $846k in current liabilities and $400k in other liabilities at the end of last May and then of course there are those paid promotions. So maybe investors should sit on the sidelines for now and wait for some more financials to appear.

Unisource Corporation (OTCMKTS: USRC) Announces New Licensing Deals

Small cap Unisource Corporation is a holding enterprise whose strategy is to acquire and combine third party logistics service providers and logistics technology providers in order to offer a unique, cost effective Cloud-based SaaS solution for the global logistics marketplace. On Friday, Unisource Corporation fell 7.1% to $0.385 for a market cap of $33.57 million plus USRC is up 284.6% over the past year and down 61.5% over the past five years in intermittent trading according to Google Finance.

What's the Catch With Unisource Corporation? According to various disclosures, transactions of $1k, $2k, $3k, $3.5k, $15k and $40k have or will occur to mention Unisource Corporation in various investment newsletters. Last Thursday, Unisource Corporation announced that China-based NVOCC (Non Vessel Operating Common Carrier) Greating Shipping had executed a license to deploy Visionship G3 as their primary domestic Transportation Management System. Earlier this month, Unisource Corporation also announced that MEMKING IT Asset Recovery had chosen Visionship G3 as their Asset Recovery and Transportation Management System plus announced that A1 Transport had chosen it as their Transportation Management technology platform. A quick look at Unisource Corporation's financials reveals revenues of $133k (Q2) and $47K (Q1) along with net losses of $1,438k (Q2) and $102k (Q1) for the only quarters posted on Yahoo! Finance. At the end of June, Unisource Corporation had $60k in cash to cover $707k in current liabilities – meaning investors might want to take a wait and see attitude to see how much revenue the latest licensing deals generate for the company.