The Wiki Group, Inc. (OTC:TWGI) Slides Despite Email

Some promotions end before they started, as with The Wiki Group, Inc. (OTC:TWGI), which is falling two days in a row. The last promotional mail in our database is from January 16th, but even with 19 emails in a month, the cliff drop is inevitable. On Wednesday, the ticker closed down more than 37% at $0.031.

The Wiki Group, a provider of peer-to-peer financial services, is worth $4.2 on today’s market prices and its cheap stock allows for large moves. The company itself could hardly support the greater stock price. Its business with money-lending and payment online platforms does not show too stellar results:

• $66,132 cash

• $1.12 million total liabilities

• $1801 revenues

• $211,697 net loss

The news for an intended public shelf offering did not help the stock much. TWGI announced that an unnamed so far New York investment company has agreed to run the shelf offering for a total of 100 million dollars, with the first tranche being $20 million. At five cents per share, this means 400 million new shares appearing on the market, while the company’s current free float is just $25 million.

The company claims the shelf offering, which has a time horizon of two years, will finally give TWGI the sufficient funds to market its products more aggressively. The shelf offering will come after a successful merger with financial service company Moneytech Limited.

TWGI expects Moneytech to help expand its product range with other services. The potential merget will create a firm that also offers financial services for small and medium enterprises, gift card solutions and foreign exchange solution. But all of this is still in the forward-looking ideas of the business and does not reflect the current condition of the stock price, which is determined mostly by the pumpers’ activity.

The latest email, with a budget for a single message of $3,000, was ran by Jet-Life Penny Stocks. Its picks are in no way lucky: the previous pump for FIMA, Inc. (OTC:FIMA) sent the stock down from 1 cent to double-zero territory. With this warning in mind, it is best to do your own due diligence of the company and estimate if you can afford a sharp and unexpected loss.

Another pumper for TWGI shows no better record. StockRunway.com has a history of past promotions, as the pump for TWGI ran along other tickers with a relatively small average budget of $4000. This pumper helped the long campaign for Global Stevia Corp. (OTC:GSTV), sending away messages in November. Since the end of the pump, the ticker has been depressed, trading for less than a fifth of its previous value