Validian Corp. (OTCMKTS:VLDI) Rides The Pump Up And Down
Validian Corp. (OTCMKTS:VLDI) managed to jump 13.98% yesterday on a heavy dollar volume as a barrage of paid pumps hit inboxes and stirred opportunistic traders to action.
At least 5 different e-mails with compensations ranging from $6 thousand to $50 thousand were sent and the effect they had on the stock is easily discernible. Within minutes of the session’s opening, the ticker had already clawed its way all the way up to $0.062, before it was systematically crushed back to about a nickel. As it is, the fact that VLDI managed to finish in the green at all is no small wonder in and of itself. Why?
Well, even if we ignore the horrible red flag that an expensive paid pump campaign represents, the company still fails to impress. Here’s a quick summary of what it reported at the end of the quarter ended June 30, 2015:
- Cash – $40 thousand
- Total Current assets – $246 thousand
- Total current liabilities – $11 thousand
- NO REVENUES
- Net loss – $797 thousand
These figures are horrendous and unsatisfactory on so many levels that it almost beggars belief. Then again, this is a pumped OTC Marked company – was anything else really to be expected?
On a related note, said report also noted that as of the date of its filing, VLDI had issued and outstanding promissory notes worth $6.9 MILLION. These just might be the reason the ticker was brought to a screeching halt and then changed direction so soon after it started its climb yesterday.
The sad thing is, even if said debt was converted into shares and found its way to the market, it wouldn’t really be the first instance in which crushing dilution has been heaped on the investors’ backs at a bad time. Suffice it to say that over the course of the past year alone, VLDI‘s shares outstanding have grown from 270 million 367 million.
Investors wishing to make money out of VLDI should really pay attention to such details, and be very very careful with their timing.
