World Moto, Inc f/k/a Net Profits Ten Inc (OTCBB:FARE) Stamps on the Throttle
World Moto, Inc f/k/a Net Profits Ten Inc (OTCBB:FARE) isn’t among the most reputable companies in the OTC Markets. Back in early 2013, the stock became the pick of the infamous Awesome Penny Stocks and after a brief peak, it crashed hard, taking with it the hard-earned cash of many inexperienced investors.
Once people saw that APS’ promises don’t actually mean much, they stopped trading FARE and the ticker slowly faded into oblivion. We have seen a few spikes over the last two years, but overall, trading has been rather slow and the slide has been pretty much constant. Last Friday, FARE logged the latest in an extremely long line of 52-week lows and it stopped at $0.0013.
Yesterday, however, it bounced hard thanks to a press release. FARE announced that the first shipments of the Moto Meter have started and investors scrambled to buy as many shares as possible. At the end of the day, the dollar volume was sitting at more than $120 thousand and the price gains amounted to nearly 240%. FARE reached a close of more than $0.004 for the first time in two and a half months.
Investors seem pretty excited about the news, but they have apparently forgotten that this isn’t FARE‘s first PR-fueled spike. In fact, the ticker is rather easily affected by optimistic press releases and it often runs in the right direction. The spikes tend to be short-lived, however, and hype often dissipates quite quickly.
Investors have also forgotten that in FARE‘s case, an optimistic press release doesn’t necessarily mean much. In March, for example, the members of the management team were mightily excited when they announced the launch of the Yes(TM) mobile application. They reckoned that it’s going to be a huge success, but in reality, right now, six months later, the installs counter at Google Play sits at less than 500.
There are no revenues and the rest of the 10-Q is pretty appalling as well. Here’s a summary of the most important figures:
- cash: $2,196
- current assets: $29,249
- current liabilities: $1,568,349
- quarterly net loss: $367,497
Last but not least, investors seem to have forgotten about FARE‘s biggest problem – the toxic debt. During the first six months of 2015 alone, the company picked up a total of $305,240 worth of convertible notes. Some of that amount can be turned into stock at 60% of the lowest trading price recorded during the last ten sessions which means that certain people can effectively get shares at less than $0.0008 apiece at the moment.
Speaking of which, after the end of Q2, FARE was forced to print no less than 84,576,719 shares as a conversion of notes at an average rate of $0.0015. These shares probably won’t have much trouble finding their way to the open market and once they do, they might bring tears to the eyes of FARE investors once again.
