V Group Inc. (OTCMKTS:VGID) Explodes for no Good Reason
The fact that you’re reading this article means that you’ve probably seen the massive jump V Group Inc. (OTCMKTS:VGID) made yesterday. The ticker managed to gain as much as 185% and it reached $0.002 per share for the first time in over nine months. The fact that you’re reading this article also suggests that you’re thinking about either trading or investing in VGID. Let’s see if any of these options is viable.
At first glance, yesterday’s sudden and violent surge in the right direction looks like a classic penny stock promotion. And, as most of you probably know, penny stock promotions are often an easy way for experienced traders to make some quick money. The thing is, VGID isn’t promoted. The latest emails touting the stock were received back in April and we can see none of the other traditional traces of a paid pump.
There are no press releases, either which makes Monday’s massive jump rather strange. Quite dangerous as well. Penny stocks tend to be unpredictable at the best of times, and when they’re running on nothing but thin air, things get even more tricky.
So, trading the stock could easily leave you in a bad mood and early trading today proves the point rather well. About forty minutes into the session, VGID is traded at $0.0018 which is a hefty 10% in the red. But what if you’re looking for a long-term investment?
Well, the latest financial report doesn’t look too bad. Here’s what VGID recorded at the end of the first half of 2015:
- cash: $3,778
- current assets: $282,456
- total liabilities: $29,000
- revenue: $381,300
- net income: $63,700
Sure, the statement does have its faults. The cash reserves, for example, are pitiful. Nevertheless, the operations seem quite strong and the figures above don’t even include the sales and profits generated by VGID‘s distribution arm. For reasons that are completely unfathomable, its financials are compiled in a separate statement which says that during the first six months of 2015, V Group Distribution logged $87,120 in sales and a net income of $2,490.
All in all, while it won’t be disturbing Coca Cola’s sleep any time soon, VGID does seem like one of the few beverage enterprises in Pennyland that actually have a product. The results certainly don’t suggest that the ticker is supposed to be in the triple-zero levels. Another factor, however, does.
VGID‘s management team kindly decided to provide us with a relatively detailed description of all the share printing that occurred between January 1, 2014 and June 30, 2015. It is located immediately before the financial statements in the latest report and if you take the time to read through it carefully, you’ll see that during that period, exactly 268,500,000 shares of common stock were issued at $0.0001 per share in order to satisfy $26,850 worth of convertible debt.
What this means is that 43% of all the outstanding shares were issued at a price that is exactly 95% below the current market value.
