Virtual Piggy, Inc. (OTCBB:VPIG) Bullied Into a Hole
Yesterday the share price of Virtual Piggy, Inc. (OTCBB:VPIG) burnt through the floor and was left sitting in a smoldering crater, over 43% below its Friday close. The disastrous slip was quite likely triggered and then further assisted by a couple of blog posts.
On Friday two different blog-format article outlets concerned with publicly traded stocks posted articles bashing VPIG, its beneficial shareholders and its founders. The tone and content of one of those articles was actually so inflamed that the site had to take it down for reviewing and possible re-publication. The other one is still up and it mostly rehashes the same content.
Many could view the articles as a shorter attack on the ticker, perhaps rightly so, and the end result is undeniable – VPIG crashed by almost a half in a single session, following a few previous troubled sessions in mid-September.
We have always attempted a more balanced approach when looking at any stock, as our goal is to inform. The best place to look for information about a business remain its financial reports. The company’s latest quarterly was met with mixed reactions as it boasted both significant cash for an OTC-tier enterprise that grew from December, but also minimal revenues bordering the negligible. Current liabilities have been cut down, VPIG‘s network of partners grew and their gift cards have reportedly been launched, but net loss has widened quarter-over-quarter.
VPIG came up with a press release briefly commenting on the inflammatory blog articles in question, specifying that the company is aware some of their authors hold a short position in VPIG – one that they may well have cashed out by now, considering yesterday’s slaughter happened on very heavy volume. Whether VPIG will bounce or the cut left by the articles will run even deeper remains to be seen.
Other stocks that moved big volumes in yesterday’s session include Alkaline Water Company, Inc. (OTCBB:WTER) who closed 20% up, assisted by an ongoing pump. Provectus Pharmaceuticals, Inc. (OTCMKTS:PVCT) moved over 1 million shares and the stock closed over 2% down, stopping at $1.01 per share.
