StockGuru Place Their Money on Soul and Vibe Interactive Inc. f/k/a Victory LG Inc (OTC:SOUL)

Children nowadays rarely experience the joy of going out on the streets and playing with friends. Games like baseball and football have turned into nothing more than TV events where you see a lot of overpaid celebrities get all dirty and sweaty. We sort of miss the times when playing was an outdoor activity. Our nostalgia, however, won’t stop people from playing video games, and neither will it stop companies like Soul and Vibe Interactive Inc. f/k/a Victory LG Inc (OTC:SOUL) from trying to succeed in this particular sector.

SOUL are a relatively young company – they were incorporated only a couple of years ago so experience is not on their side, and they have been in the gaming industry for an even shorter period of time. Until recently, they claim, they were producing liquid gel capsules. Why did they make the leap from capsules for medicines to video games, it’s anyone’s guess but the change is a fact it’s fair to say that they are quite excited about the new business sector.

Some acquisitions took place recently, a new CEO was appointed and a lot of shares changed hands. The result of this is that a person called Peter Anthony Chiodo is now at the helm and he also owns about 80% of all issued and outstanding shares. SOUL say that Mr. Chiodo has tonnes of experience in the gaming industry which, if it’s true, means that he has the expertise. The question is: “Does he have the finances to turn SOUL into a profitable company?”.

A quick look through the latest quarterly report and you will see that the answer is “no” or, at best, “not yet”. We’re not sure if Mr. Chiodo was aware of the figures when he decided to take control, but we’d say that SOUL is quite strapped for cash right now. Here are the figures as of November 31:

• cash: $137
• current assets: $23 thousand
• current liabilities: $59 thousand
• no revenue since inception
• net loss since inception: $54 thousand

After we browsed through their website we were left with the impression that the people who work for SOUL really are passionate about gaming. They say that games have soul and that it’s more fun to talk about games than to actually play them (we found that rather confusing) but, in reality, if they don’t do something about the financial situation, they’ll never get the chance to be really involved in the gaming industry.

And they say that they are going to do something about it. Their report says that the money they have at the moment won’t be able to cover for their expenses (who would have guessed?) and that they plan to raise some additional capital through debt financing. It is true that money should come from somewhere, however, if they get carried away with the debts, they might someday start issuing millions of shares to cover up for notes which would probably leave behind some very angry investors. And you should bear in mind that they recently raised the number of authorized shares, so this is a real threat.

That might put some investors off and a lot more will run away when they find out that SOUL have been promoted. We know how most pumps end up and the ones performed by StockGuru are no exception. On the right you should be able to see Firemans Contractors Inc. (PINK:FRCN)’s chart. They got featured in a promotional campaign in which StockGuru also took part back in August 2012. It is pretty evident what the outcome was.