Pump for Pacific Webworks, Inc. (OTCBB:PWEB) Looks Dead on Arrival
Yesterday the stock of Pacific Webworks, Inc. (OTCBB:PWEB) closed 35% up on incredible volume. Sadly, the main reason for the movement seems to have been a volley of pump mails sent out over the weekend and at yesterday’s open.
The first pump mails came through on Sunday, from a number of promoters, including Stock Hunter. The very pumps said the stock was barely traded and had no real recent trading history to speak of, yet the pumpers decided it was worth touting, even against no compensation, in an effort to improve their track record with a free tout.
Two more pumps came yesterday morning, sent from a promoter who is probably familiar to traders following OTC stocks. The Stock Psycho, also sending alerts as Darth Trader, send two pumps for PWEB, touting a two-week-old press release from the company, claiming it was released “just recently”. The PR was mostly full of generalities and non-specific optimism for the future, including the company’s plans to expand its business and market its products.
What results that marketing has given in the past can be glimpsed from PWEB‘s reports. Their latest quarterly is dated March 2013 and contains the following:
- $1.5 million in cash
- $726 thousand in current liabilities
- $227 thousand in quarterly revenues
- $88 thousand in quarterly net loss
The fact that PWEB has over $1 million in cash is a positive but the company consistently fails to turn profit. The bottom line for 2011 and 2012 was respectively $1 million and $811 thousand in net loss. The report mentions a continuous decline of revenues in 2013 due to ‘customer attrition’ and a failure to acquire new customers. With outstanding shares very near to the max authorized amount, the company may soon need to either up the authorized number or start burning through more significant amounts of its cash.
Despite the best efforts of pumpers and the 35% green close, PWEB virtually moved downwards throughout the session, as after the pumps shot the price up over $0.05 per share, the action reversed and PWEB closed 55% down from its intra-day high, making it look extremely dangerous to try and chase the stock.
Other OTC stocks that were in the limelight yesterday include Xumanii, Inc. (OTCMKTS:XUII) – the unusually resilient Awesome Penny Stocks pump that reached a new high closing another 25% up. Liquidmetal Technologies, Inc. (OTCBB:LQMT) are also trying to retrace their last week highs, closing 40% up at $0.18 per share.
