LiveWorld, Inc. (PINK:LVWD) Update their Facebook Profile
Like it or not, social media has become a huge part of our lives and we, intentionally or not, use it virtually every day. Some big companies are especially sensitive when it comes to this form of communication since it is a very convenient way to destroy someone’s reputation. This is where companies like LiveWorld, Inc. (PINK:LVWD) should come in.
LVWD basically promise you to help you with the management of your big, profitable brand. They will do anything from making the Facebook page of your company look good to providing you with software through which you will be able to follow the conversations regarding your company on all sorts of websites. A few years ago this sort of service would have sounded ridiculous, but now it seems as essential for your business as having a logo.
LVWD were quick to react and now, they are reaping the fruits of their labor. Could we say that they are a profitable company? As unlikely as it may seem, yes, they are. Here’s a summary of the most important financials:
- cash: $3.4 million
- current assets: $6 million
- current liabilities: $3.9 million
- revenue (Q3 of 2012): $3.4 million
- net income (Q3 of 2012): $412 thousand
They might want to think about optimizing the process of providing the services and products a bit, since, as it stands, the net income amounts to just 12% of the whole revenues generated but, on the whole, the financial statement looks rather pleasing.
One thing that we noticed about it, though – they didn’t put in that much effort in writing the report itself. There are places where they we can see some predictions for the revenues expected for the third quarter of 2012 when, in fact, the report deals with the events that has occurred during the third quarter. We admit, it’s not that big of a deal, but we would have been happy to see what they foresee in the future. We hope that they are not as negligent on their job, otherwise quite a lot of their wealthy customers might soon be gone.
We are also rather perplexed about the fact that they are featured in a promotional campaign, although, it’s not quite clear if Marquee Penny Stocks have received a compensation. One thing is for sure, a company as successful as LVWD is in no need of such forms of publicity. But it does receive it and that got us digging deeper to see if there is someone who might take advantage of a sudden jump in the price. It turns out that such a person might just exist. It’s a part of the company policy to issue stock-based compensation in the form of options every now and then. During the period between January 2012 and September 2012 a total of 100,000 options were converted into common stock at just $0.02 per share. This means that, even at the current price, the profit could be substantial.
We fear that such a person profited from another company promoted by Marquee Penny Stocks, IMING CORP (PINK:IMNG). Some emails about them flew around about a week ago presenting IMNG as a gold mine and as soon as they stopped, the stock crashed badly wiping out more than 30% in one session and a further 16% the day after.
That’s why you should be extremely careful in considering the risks in case you decide to invest in LVWD. Indeed, they seem to know what they are doing, but promoted penny stocks always hide the odd underwater rock.
