The Pump on WORLD ASSURANCE GROU (PINK:WDAS) is Not Going According to Plan
Yesterday we received some emails about WORLD ASSURANCE GROU (PINK:WDAS) and, although we are generally skeptical towards promoted penny stock companies, we decided to check on them to see what they are up to. As you might have read in yesterday’s article, we weren’t very impressed.
We saw that the newsletters are trying to convince investors into putting their money on a company that has absolutely no current assets and has recently acquired Cellad, Inc, an Irish venture that nobody has ever heard of, dealing with the development of annoying mobile phone applications that will make ads appear on your screen every now and then.
If the pumpers’ emails are to be believed, it is all very good and it will all end well, with both WDAS earning big money from their new daughter company, and investors profiting from a start-up venture that will soon explode into view.
What they forgot to mention, though, is whether Cellad have a ready-to-go product. They also don’t tell us how much money will be earned through the advertisements and, truth be told, they have kept pretty quiet about all the crucial details.
The question of WDAS‘ horrifying financial statement remains open as well but, we figure, that the promoters didn’t think it was all that important since WDAS didn’t spend a penny on the acquisition. That’s correct, it was all done through the issuance of shares. To be more precise, the newly appointed officers, that were previously at the helm of Cellad have received some series B preferred stock that equates to 80% of the voting capital.
In the meantime, the series A preferred shares will be automatically converted into common stock at some huge discounts which will, no doubt cause some severe dilution.
We reckon, WDAS wanted to divert the attention of their shareholders from these facts, which is why they got up early yesterday, so that they can officially announce that the acquisition is completed. The press-release was published just minutes before the opening bell and, despite the fact that it sounds just as optimistic as every other press-release, it didn’t help much with the stock price. In fact, despite the relatively large volume, WDAS lost nearly a fifth of their value during yesterday’s session.
We can’t be sure why this happened but, most likely people who received the emails did some research and they were able to uncover the facts above. Most likely, they also found that the current CFO of WDAS is a person called Vincent Browne, the same man who runs a couple of other penny stock companies – AXIOLOGIX INC (PINK:AXLX) and Flint Telecom Group, Inc. (PINK:FLTT) – two ventures with little money that have gone through a number of pumps. Apart form the fact that he should be very good at multitasking, Mr. Browne will also need to think about defending himself in court since, as FLTT‘s filings disclose, there are a number of complaints filed against him, including one for securities fraud.
Despite that, the promoters are not ready to give up without a fight and some new names start to appear on the horizon right now. Today we received an email from Bird Gang Stocks, for example, in which they claim that WDAS is a solid ticker. They said the same exact thing about Dragon Capital Group Corp. (PINK:DRGV) back on January 15, but that didn’t exactly inspire DRGV in the long run as seen from the chart on the right.