Legacy Wine & Spirits International Ltd (PINK:LWSP) Getting the Pump Treatment by StockBlaster
Fine wine is not the first thing that comes to mind when you think of China. Still, the market of the world’s most populous country should never be underestimated, regardless of whether you are trying to sell nasty replicas of expensive mobile phones or first quality wine that costs as much as the average monthly salary. At least, that’s what Legacy Wine & Spirits International Ltd (PINK:LWSP) think.
After failing in a couple of previous ventures – first, as a company developing business opportunities through the Internet, and then as a mineral exploration company – they decided that they are going to cater to China’s most sophisticated palates by importing and selling first-class wine in the Asian country.
They opened a boutique-style shop in the city of Tianjin and it looks as if it came out of a wine connoisseur’s wet dream. This is all well and good, but is China really the best place to promote expensive wine? If we believe LWSP, yes, it is and the market is growing by the minute. If we read their financial statement, though, no, it’s not.
We found a lot of interesting facts about LWSP in their latest report, and to kick things off, we have summarized their financial statement below:
- cash: $10 thousand
- current assets: $18 thousand
- current liabilities: $209 thousand
- net loss for Q3 of 2012: $74 thousand
- net loss since inception: $5.4 million
They have also registered some sales. Since inception, they amount to $110 thousand. The more disturbing thing is that the revenues for Q3 of 2012 amount to zero. This means that the Tianjin shop was either closed for these three months, or nobody was lured by the vintage look. And although, the website also promotes LWSP‘s franchise program, nobody seems to be interested.
Looking through the report, we can see some other intriguing facts. 17.5 million shares were issued to five different companies on January 1, 2012 in exchange for all sorts of services. LWSP say themselves that these businesses are all owned by unnamed significant shareholder(s). One of those companies is Palisades Financial Ltd. who received 3,125,000 shares for investor relation services estimated to cost $5,000. The thing is, the same Palisades Financial Ltd. paid PennyStockCrowd and StockBlaster a total of $15,000 for the promotional emails on LWSP. We can’t be certain, but we feel that Palisades and the people behind it will part with quite a lot of shares very soon and will make quite a lot of money. That’s probably what they call investor relations.
If you still feel that there is nothing out of the ordinary about LWSP you should probably take a look through the companies promoted by StockBlaster in the past. One of them is Portlogic Systems Inc. (PINK:PGSY) and it was promoted not more than a week ago. Since then, PGSY lost 64% of price.
Quite a lot of people are staring at LWSP‘s chart at the moment. We’re quite sure that the people behind Palisades are also following the events closely. And we’re also quite certain that they are dreaming of a vacation on the Bahamas. We won’t be the ones who will give it to them.
