Hot or Not? Last Week's Promoted Small Caps Fizzle This Week: MWAR, PGSY & STCC

Small cap stocks Muscle Warfare International (OTCMKTS: MWAR), Portlogic Systems Inc (OTCMKTS: PGSY) and Sterling Consolidated Corp (OTCBB: STCC) were all the subject of a few paid promotions as recently as last week but they sure did not start the new week out right because all were sinking on Monday. So are these small cap stocks that are either the subject of promotions or investor awareness campaigns hot or not? Here is a quick reality check:

Muscle Warfare International (OTCMKTS: MWAR) Has Exciting Plans

Small cap Muscle Warfare International researches, evaluates and acquires profitable private firms in the business segments of sports nutrition, energy and business services for the benefit of our shareholders. On Monday, Muscle Warfare International sank 29.17% to $0.0119 for a market cap of $4,200 plus MWAR is up 11,800% since the start of the year and up 19% over the past five years according to Google Finance.

What's the Catch With Muscle Warfare International? According to various disclosures, transactions of $2k, $3k and $15k have or will occur to mention Muscle Warfare International in various investment newsletters. Last Tuesday, Muscle Warfare International issued a letter from its CEO which noted a dozen events from 2013 and plans for the coming future. Events highlighted included being up-listed from Limited to Current status, the filing of disclosure statements along with financials, passing an FDA inspection, the launch of products at Select GNC Store Locations throughout the Nation and the acquisition of a company in the Nutritional Supplement Industry that has been conducting business since 2002, has been a past recipient of the GNC rising star award and in its top performing year, hit $9,900,000 in top line sales. In addition and late in October, Muscle Warfare International issued a "CEO Discusses 3rd Quarter Disclosure" statement which noted that the company has been conducting business since 2002 with annual revenues of approximately $1,000,000 plus while the CEO was quoted as saying:

"I am very excited about the 3rd quarter financials our revenues have increased over the 2nd quarter numbers by 40 percent, gross profits are up by 60% and our net loss is down by 24%, the reported numbers represent consolidated financials for all three of MWAR's companies as well as MWAR. Muscle Warfare is in the growth stage of our company and spending money on advertising, acquiring inventory, attending trade shows and building a strong and viable sales team."

A quick look at Muscle Warfare International's financials on Yahoo! Finance reveals financials for the quarter that ended last March and then for quarters back in 2008 – meaning the company is a little behind on them and investors might want to wait for them to catch up.

Portlogic Systems Inc (OTCMKTS: PGSY) Recently Reported Record High Revenues

Small cap Portlogic Systems is a telecom solutions provider, and mobile and Internet software developer and solutions provider for electronic payments, ticketing and marketing delivery and community communication systems. On Monday, Portlogic Systemssank 39.2% to $0.011 for a market cap of $2.27 million plus PGSY is down 75.6% since the start of the year and down 98.1% over the past five years according to Google Finance.

What's the Catch With Portlogic Systems Inc? According to various disclosures, a transaction or transactions of $50k has or will occur to mention Portlogic Systems in various investment newsletters. Last Wednesday, Portlogic Systems announced its CRM offering in collaboration with JBBMobile's Field Cloud work order and customer management system while back in September, the company announced Beta testing had concluded for FAMILIES - a privatized customizable social media family network site that is ready to launch. In early September, Portlogic Systems also issued a press release to report that revenues for the 4th quarter of 2013 were a record high of $482,390 and were $648,806 on a year-to-date basis – accounting for 87% of the $745,538 in base revenues earned since the company's inception. A closer look at the complete financials reveals revenues of $563k (most recent reported quarter), $482k, $117k and $49k for the past four quarters along with net losses of $45k (most recent reported quarter), $55k, $61k and $89k. At the end of August, Portlogic Systems had no cash to cover $968k in current liabilities. Aside from the horrendous cash situation, the income statement does not look too bad. Sp perhaps investors should not completely dismiss this small cap.

Sterling Consolidated Corp (OTCBB: STCC) Is Stalking Acquisitions

Small cap Sterling Consolidated Corp through its wholly-owned subsidiary, Sterling Seal and Supply has been a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for more than 40 years. On Monday, Sterling Consolidated Corp fell 9.09% to $0.150 for a market cap of $5.58 million plus STCC is down 40% since last May according to Google Finance.

What's the Catch With Sterling Consolidated Corp? According to various disclosures, transactions of $10k and $50k have or will occur to mention Sterling Consolidated Corp in various investment newsletters. Last Friday, Sterling Consolidated Corp issued a press release to announce that it had issued three term sheets to prospective targets whose revenues combine for approximately $5 million and who are strategically located in regions throughout the east coast from the Northeast to Florida. The targets would also provide the Company with additional domestic and new international customers. The press release also reminded investors that in early October, Sterling Consolidated Corp had secured a $2.45 million senior secured note from Customers Bancorp, Inc. Financing terms included a stepped up line of credit to $1.25 million with a variable rate of 3.75% initially along with a $1.2 million commercial mortgage with a rate of 4.5% termed out over five years. A quick look at Sterling Consolidated Corp's financials reveals revenues of $1,501k (most recent reported quarter), $1,663k, $1,217k and $5,328k for the past four quarters along with a net loss of $107k (most recent reported quarter), net income of $111k, a net loss of $72k and net income of $64k. At the end of June, Sterling Consolidated Corp had $108k in cash and $886k in receivables to cover $2,288k in current liabilities and $4,728k in total liabilities. Certainly the balance sheet could use some clean up, but the income statement does not look all that bad – meaning investors might want to at least keep an eye on this small cap.