The Pump for Well Power, Inc. (OTCMKTS:WPWR) Picks Up Momentum
On February 9 the pumping outfit Stock Tips, arguably the most influential pumper since Awesome Penny Stocks were forced to retire, announced that its next pick will be Well Power, Inc. (OTCMKTS:WPWR). On the very next day the stock of the company exploded rising by 490% and closing at $0.325 per share. The 34 million shares traded throughout the session were even more impressive resulting in a dollar value of $9.8 million.
After this first day of excitement though the stock started to drift sideways and refused to move in either direction despite the constant touting. Still when Stock Tips are going to receive the disclosed sum of $4.1 million they can continue to hype-up the company for quite a while. On Monday their efforts finally managed to influence the stock and WPWR surged by 24% and broke through half a dollar.
Yesterday the artificial hype continued to build up and the stock posted its second best session since the start of the pump. WPWR shifted 10 million shares, added 21% to its value and closed at $0.62. As a result the market cap of the company is currently around $66 million. Let’s repeat that – $66 million market cap for a company that according to its last financial report had ZERO assets. More specifically:
• cash: $0
• total assets: $0
• total liabilities: $100 thousand
• revenues: $0
• net loss: $2000
• total assets: $0
• total liabilities: $100 thousand
• revenues: $0
• net loss: $2000
Currently they are talking about the deal with ME Resource Corp (CNSX:MEC) for the exclusive distribution of Micro-Refinery Units (MRU). Well, if you have read some of our previous articles about the company you know that under the agreement WPWR are required to pay $100 000 just 30 days after the 8-K form was filed. This period ends in a few days and for now there have been no news about any fund sources secured by the company.
Not to mention that back in 2007 975 000 shares were sold to 38 investors for just $19 500, or they paid $0.02 for each share. Then the 50-for-1 forward split turned those shares into close to 50 million. If these people currently hold even a portion of the shares they stand to gain quite a bit when the market price at the moment is above 60 cents. In early trading today the stock is going even higher trading for $0.659.
It is important to realize that WPWR is nothing more than a pump play. It may offer some opportunities for quick gains but the associated risks should never be underestimated. Especially with the SEC once again sprang into action and suspended the pumped stocks of Centor Energy Inc (OTCMKTS:CNTO) and Imogo Mobile Technologies Corp. (OTCMKTS:IMTC) just this month. CNTO resumed trading on the grey market today and has already lost 40% of its value.
