Valmie Resources Inc. (OTCBB:VMRI) Comes Tumbling Down
Valmie Resources Inc. (OTCBB:VMRI) managed some very impressive jumps in the first two sessions of this week’s trading, but Wednesday certainly wasn’t kind to its market cap gains. Why?
The possible reason for the pullback we’re witnessing now becomes obvious once you take a closer look at what is known about the company’s current situation.
What one can find in the balance sheets of VMRI‘s latest financial report certainly doesn’t paint the company in a favorable light:
- Cash and cash equivalents – $24 thousand
- Total Assets – $58 thousand
- Total Liabilities – $268
- No Revenues
- Net loss – $83 thousand
Suffice it to say that those numbers are fairly discouraging, but investors are advised to keep on reading the report in question past them, because doing so reveals a whole lot more they should know about VMRI – and none of it is pretty.
Like the fact that over the last two years, $300 thousand worth of stock has been issued by VMRI at a rate of $0.1 a pop.
As hard as that may be to believe, this is not even the worst part. No, the biggest blow to investor value in VMRI history is likely that one time a couple of years back when the company issued 59 million shares of its common stock in return for less than $10 thousand.
All of these glaring red flags should be enough to make investors wonder why VMRI‘s market cap is still as high as $66.6 MILLION.
Note that this is not to say that investors can’t and won’t find opportunities for profitable trading if they follow VMRI carefully enough. What we are saying is that, with a market cap as ridiculous as VMRI‘s and with nothing keeping the ticker afloat, investors should not be surprised if the ticker suffers more drastic corrections in the immediate future.
