VoIP-Pal.Com Inc (OTCMKTS:VPLM) Takes Aim At A New 52-Week High
VoIP-Pal.Com Inc (OTCMKTS:VPLM)’s stock has seen its fair share of promotions over the years, but perhaps the most interesting one was performed by TheSUBWAY.com who sent out a total of three emails prior to the trading session on March 7 which, accidentally, ended in quite a catastrophic 46% drop. The following days saw a lot of ups and downs but while impressive runs did give small opportunities for a profit, the overall result was pretty disappointing. We’ve been around penny stock promotions for a while so, we can’t say that we were surprised by this, but what is peculiar about the pump is the disclaimer. TheSUBWAY.com admitted that they have received 10 million free trading VPLM shares which is quite a lot for just three emails of optimistic projections about future growth.
About sixteen months have passed since then and the promoters have probably gotten rid of their holdings at VPLM but if they’re still following the chart movement, they’re probably feeling quite cross. Why? Because the ticker is reaching unprecedented highs… for the second time in just three months.
The first run took place back in May and for a couple of sessions VPLM managed to break through the $0.10 per share barrier registering its 52-week high. We witnessed some hesitation during June but after a couple of strong sessions at the end of last week, it’s back to $0.099 per share. As you have probably calculated by now, this means that if TheSUBWAY.com were to sell their stock compensation at that price, they would have gotten hold of a whopping $990,000. What’s more important, VPLM have managed to reach these prices without the help of other paid promotions which is always a plus. The question now is: “What is the cause for the strong performance?”.
Well, it all started around the end of April when VPLM updated their shareholders on the development around the patent applications for the various technologies that their acquisition target, Digifonica Gibraltar, has been developing. After that some more events occurred, but the most important is without doubt the completion of the aforementioned merger which took place on July 1.
All good news, but is the hype a bit too much? Well, when calculated at Friday’s close, the market cap amounts to more than $58 million and according to the latest quarterly report which covers the first three months of 2013, you don’t get all that much for this sort of money. Here are the most important figures:
- cash: $1,424
- total assets: $293 thousand
- total liabilities: $899 thousand
- quarterly revenue: $10
- quarterly net loss: $96 thousand
Some pretty disappointing (putting it mildly) financials, you would agree, but the revenues are perhaps the figure that should be causing the most concern. Especially when you consider the fact that the previous quarter resulted in no more than $113 in total proceeds. Still, you’re thinking, now with the new subsidiary in place and with one of the patents all but issued, things should be good, right? Well, future reports will give us an answer to this, but we’re not ready to bet on VPLM‘s success just yet.
The reason for this is quite simple. Digifonica Gibraltar was a subsidiary of a company called Digifonica International Inc (DII). Fortunately, we found out that the former parent company is publicly traded on the Toronto Stock Exchange which meant that we could take a peek at their income statement as well. Unfortunately, just like VPLM, DII have not registered any revenues since inception.
Despite the promising news, there can be no guarantees that VPLM will manage to be more successful than DII. Especially if investors find out that the “corporate headquarters” seems to be located in nothing more than a residential house (as seen from the accompanying picture on the right), which could be quite a blow to VPLM‘s credibility.
In conclusion, we should say that although the paid pumpers seem to be staying away from VPLM, sharp corrections such as the ones displayed by NanoTech Entertainment, Inc. (OTCMKTS:NTEK) and International Stem Cell Corp (OTCMKTS:ISCO) are always possible with penny stocks which is why doing a lot of research and due diligence is absolutely crucial before making any investment decisions.