Rand Worldwide Inc (OTCMKTS:RWWI) Will Not Be Rushed
We should probably start today’s article on Rand Worldwide Inc (OTCMKTS:RWWI) by saying that if you think that what you will read is just another coverage of a penny stock company with questionable ideas and unquestionably horrible financial statements, you’re wrong.
RWWI really stands out from the crowd of unsuccessful OTC-listed one-man-shows that remain stuck in the development stage for ages. The sales department, for example, consists of about 250 employees and 41 offices spread throughout North America.
As you might imagine, the latest financial report looks pretty decent as well. Here’s a summary:
- cash: $3.6 million
- current assets: $15.4 million
- current liabilities: $14.8 million
- quarterly revenues: $19.6 million
- quarterly net income: $1.1 million
Logging impressive sales is one thing. Logging impressive sales and making a profit is quite different and RWWI deserves a pat on the back for achieving it. It’s not all brilliant news, though. The financials above are a tiny bit weaker than the ones logged a year ago in just about every single aspect. In theory, however, they should keep the stock on the straight and narrow, at least to some extent.
They aren’t doing that, unfortunately. At the beginning of the month, RWWI surged up out of nowhere and after a few sessions of not-particularly-impressive volumes, it found itself on the threshold of $2.40 per share. Sadly, it then ran out of steam and it started sliding. Perhaps more worryingly, even the higher-than-usual volume on Friday failed to reverse the fall and after a small slip, RWWI closed the week with a price of $2.15 per share. Let’s see why the ticker refuses to perform.
Up until several months ago, RWWI was an SEC reporting entity which, considering the massive numbers in the financial statements is a good thing. In July, however, the registration was terminated. Not much in the way of explanation was given at first, but we later learned that the reporting obligations have been automatically suspended due to the fact that there are less than 300 shareholders of record. This could explain the liquidity problems RWWI is experiencing and it could mean that if you have some shares, you might face problems selling them.
Even if you’re willing to take that risk, you don’t have much to base your investment decision upon. Indeed, the press releases don’t sound half bad and we already talked about the figures in the financial statement. Unfortunately, apart from them, RWWI decided to put absolutely nothing else in the report for the third calendar quarter of 2015.
So, basically, RWWI has a split personality of sorts. Unlike the majority of its OTC counterparts, it is doing rather well in terms of operations. Like many of its Pennyland peers, however, its stock performance is shaky at best and its financial statements are somewhat uninformative.
