IPOWorld (OTCMKTS:IPOW) Coming Down Fast
In a matter of just two days, IPOWorld (OTCMKTS:IPOW) managed to wipe out exactly a third of its market cap and it slumped from $2.10 all the way to $1.40 per share. Is this because the stock was overvalued? Or is it just a rough patch that actually presents a massive buying opportunity?
Well, the pumpers from Rising Stock Advisor claim that IPOW is the “Amazon of Legal Marijuana” so they’ll probably urge you to buy as much shares as you can. In fact, they’ve been doing that for the last few days and they’ve been trying to convince everyone who cares to listen that the stock can turn $2,000 into $22,740. Then again, they are managing a budget of a whopping $600 thousand and they’ll keep the money left after the distribution of their optimism to themselves, so their judgment might be affected.
Certainly, there are things they won’t tell you. They won’t tell you, for example, that at around $40 million, IPOW‘s market cap isn’t in line with the $49 thousand in total assets, with the $56 thousand in current liabilities, and with the lack of revenues. They also won’t tell you that penny stock promotions are very dangerous. And they should know a thing or two about that.
These are the same people that pumped Axiom Corp (OTCMKTS:AXMM) back in the first months of 2015. With their help the ticker managed to reach a high of $1.87 per share, but currently, it’s sitting at just over $0.02.
The pumpers will also conveniently forget to tell you that in November 2014, IPOW turned a $200 thousand convertible note into 2.5 million shares which pushes the conversion rate down to $0.08 per share. And they won’t mention a word about the 5 million shares sold to the public at $0.01 apiece several years ago when IPOW (then called General Cleaning & Maintenance) was going public.
We, on the other hand, told you about them in our previous article a couple of days ago, and we warned you that all the red flags could wreak havoc with IPOW‘s performance.
All you need to do now is think through the risks carefully before you trust anyone.
About thirty minutes after today’s opening bell, IPOW is sitting at $1.12 per share (another 20% in the red).
