Voip-Pal.Com Inc. (OTCMKTS:VPLM) Climbs On Optimistic News
After the good climb that the stock of Voip-Pal.Com Inc. (OTCMKTS:VPLM) made in the end of September the ticker was struggling to maintain its price of around $0.20 for a while and dropped below it several times.
Recent news, however, managed to attract some investor attention and it seems like VPLM is headed for new heights. On January 7 the company announced that they have received a notification from the United States Patend and Trademark Office (USPTO) about the issuance of their Mobile Gateway patent on January 14, 2014.
This attracted some attention and the stock climbed 15% in the two following sessions on Wednesday and Thursday. The end of the week was even better and we also saw an increase in traded volume.
The final session before the weekend added another 16% to the value of VPLM who closed at $0.2402 on more than 3 times the average volume. Some 3.5 million shares switched hands during the session, which provided for $846 thousand in dollar volume.
How long can this run last, however. Judging by the numbers from VPLM‘s latest financial report we reckon that it wont last that long.
- cash: $7.6 thousand
- total assets: $19.5 million
- total liabilities: $1.5 million
- revenues: $151
- net loss: $3.3 million
The small amount of cash the company has on hand doesn’t seem so bothering looking at the total assets, however, more than 99% of the are from an investment made in Digifonica in the form of $914 thousand cash and some 265 million issued shares that will undoubtedly dilute the stock.
Having this in mind and the fact that the low cash on hand may be insufficient for the company to carry its daily operations is rather stressful to the shareholders. Furthermore, if VPLM wants to raise more capital the company will have to issue more stock which will cause further dilution.
In any case, be sure to do your due diligence and weigh out the risks if you are thinking of getting in around the hype, because things might turn sour pretty quick.
Generex Biotechnology Corp. (OTCMKTS:GNBT) also closed the week good and added 30% to its value. We can’t say the same for the stocks in the medical marijuana sector who had a good run after sales in Colorado for recreational use were made legal and Growlife Inc (OTCBB:PHOT) and Hemp Inc (OTCMKTS:HEMP) dropped 15% and 31% respectively.
