Writ Media Group Inc (OTCMKTS:WRIT) Climbs Back To A Dollar
tags: WRIT
During the very last trading session for June the stock of Writ Media Group Inc (OTCMKTS:WRIT) reached an intraday high of $1.50. The company, however, closed the day with devastating crash of over 38% at 66 cents per share. After an impressive climb of 20.5% yesterday the stock is now once again sitting at the 1 dollar per share mark. Can WRIT hold on to such prices, though?
Investors should realize that the only thing that is supporting the stock of the company is the paid pump carried out by the affiliates of Finest Penny Stocks. Without the artificial hype the company will have tremendous difficulties in justifying its current share price and its market cap, which at the moment stands at more than $25 million.
To see just how disconnected such valuation truly is from the fundamentals of the company all you have to do is open the latest financial report. It covers the quarter ended December 31, 2015, and contains the following numbers:
• $264 cash
• $879 total current assets
• $888 thousand total current liabilities
• ZERO revenues
• $120 thousand net loss
At the end of the period covered by the report WRIT not only had approximately $230 thousand in outstanding convertible debt but it had also defaulted on nearly all of its outstanding convertible notes. Notes that allow their owners to turn them into common shares at a 45% discount.
Despite the truly abysmal state in which WRIT was at the end of last year the company decided it was a wise move to pay $16 thousand in cash and 40 thousand restricted common shares to Quality Stocks for 180 days of marketing and social media services.
And if you are wondering why are we still relying on financial information that is now over 6 months old, well, the answer is quite simple – WRIT failed to complete their annual report for the fiscal year ended March 31, 2016, within the required time. Thanks to a notification of late filing they did get a 15-day extension but that period ends tomorrow.
Underestimating the risks surrounding WRIT could be extremely dangerous. Use caution and commit to trades only after doing extensive due diligence.
