$CATQ $FTWS buyer beware new pump and dump stock

In my opinion if I was holding this stock as a long term buy and hold in my portfolio, I would sell it right now!  This blog post contains some of my reasons and possible red flags.

On November 9, 2016, (CATQ) Cataca Resources, Inc. (the “Company”) received approval from FINRA for its previously announced name change to (FTWS) Flitways Technology Inc. The name change will take effect upon the open of business on November 10, 2016. The Company’s new symbol will be FTWS and the new CUSIP number will be 33972Q107. https://www.sec.gov/Archives/edgar/data/1582919/000106299316012106/form8k.htm

$FTWS daily chart from 11-11-2016
$FTWS daily chart from 11-11-2016


The above youtube video is exactly how this company will end up, begins with a slow steady climb upwards, and then a decimating crash at the end!

As per 8K filed on Nov-02-2016:

On October 27, 2016, Cataca Resources, Inc. (the “Company”) dismissed its independent registered public accounting firm, PLS CPAs (the “Former Accountant”). The Company’s decision to dismiss the Former Accountant was approved by its Board of Directors on October 27, 2016.
The report of the Former Accountant on the financial statements of the Company for each of the two most recent fiscal years, and its reviews of interim financial statements contained no adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles, except that the audit reports on the financial statements of the Company for those fiscal years contained uncertainty about the company’s ability to continue as a going concern. During our two most recent fiscal years and through to October 27, 2016, the date of dismissal, there have been no disagreements with the Former Accountant on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of the Former Accountant, would have caused the Former Accountant to make reference thereto in its report on the Company’s financial statements.
The Company has requested that the Former Accountant furnish it with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the above statements. The requested letter is attached as Exhibit 16.1 to this Form 8-K.
Effective October 27, 2016, the Company engaged Squar Milner LLP (“Squar Milner”) to serve as the Company’s new independent registered public accounting firm. The engagement of Squar Milner as the Company’s new independent registered public accounting firm was approved by the Company’s Board of Directors. Neither the Company, nor anyone on its behalf, consulted Squar Milner during the Company’s two most recent fiscal years and any subsequent interim period prior to the Company’s engagement of Squar Milner regarding any of the matters set forth in Items 304(a)(2)(i) and (ii) of Regulation S-K.


If you google “Squar Milner LLP”  the 6th search result is an article linking to www.seekingalpha.com.  This article is focused on a former pump and dump stock $ETAK called Sell Elephant Talk On Current Law Enforcement Investigation With -75% Downside published by “The Pump Stopper.” the-pump-stopper-seeking-alpha


SEC FOIA Request shows Current Law Enforcement Investigation.

After ETAK repeatedly failed to maintain effective internal controls, BDO declined to remain as auditor for 2014, was replaced by tiny firm SQUAR MILNER.

Recent noisy director resignations citing concern over board independence, related party transactions, and continuing net losses raise red flags: Is the fox now guarding the hen house?

NYSE delisting proceedings have reached maximum number of extensions allowed to regain compliance.

Revenue has declined by 50% since 2008 while shares outstanding has increased 5 times: Fair value for ETAK is $0.20 per share if the company avoids bankruptcy.

I believe investors should be extremely cautious about Elephant Talk (ETAK) shares and give a SELL recommendation at the current price of $0.86 with a price target of $0.20 if it can avoid bankruptcy as its cash burns rapidly.”

In my opinion, this suggests to me that when a company wants do conduct some shady business, maybe they turn to Squar Milner?

Stock Purchase Agreement
On September 6, 2016, Edward Barrios, our President and sole Director, Maxwell Ramos, our Treasurer and Secretary (collectively hereinafter, the “Sellers”) and Tobi Mac Aro (the “Purchaser”) and entered into a stock purchase agreement (the “Stock Purchase Agreement”), whereby the Purchaser purchased from the Sellers, Fifteen Million (15,000,000) shares of common stock, par value $0.001 per share, of Cataca Resources, Inc. (the “Company”), representing approximately 50.00% of the issued and outstanding shares of the Company (the “Shares”), for an aggregate purchase price of Fifteen Thousand Dollars ($15,000) (the “Purchase Price”). The purchase price shall be distributed on a pro rata bases to the Sellers, Mr. Barrios currently is the beneficial owner of Ten Million (10,000,000) shares of the Company’s restricted common stock and Mr. Ramos is currently the currently is the beneficial owner of Five Million (5,000,000) shares of the Company’s restricted common stock.


So the president of the company Tobi Mac Aro has purchased 15M shares or 50% of the total O/S for the price of $15,000!  Meanwhile the current market cap of this company is trading at a valuation of $93,000,000.

How do you calculate a company’s market cap? [outstanding shares multiplied by current stock price] 1.86 x 50,000,000 = 93,000,000. http://www.investopedia.com/articles/basics/03/031703.asp

As of October 12, 2016, there are 50,000,000 common shares issued and outstanding, 0 shares issuable upon the exercise of stock purchase options within 60 days, and 0 shares issuable upon the exercise of stock purchase warrants within 60 days. https://www.sec.gov/Archives/edgar/data/1582919/000106299316011735/form8k.htm