VoIP-Pal.com Inc (OTCMKTS:VPLM) is Still Shrouded in Mystery
On June 5, VoIP-Pal.com Inc (OTCMKTS:VPLM) issued a press release which informed us that between June 6 and June 20, the company Directors and Officers won’t be allowed to trade the stock. The announcement didn’t give us any details on the reason for the “blackout period” and probably that’s why, many people started hypothesizing on the potential causes.
Rumors were plentiful and a lot of investors thought that something big is about to happen. Normally, basing your investment decision on rumors alone is never a good call, but despite this, lots of people jumped in. In a matter of just four sessions VPLM managed to surge from $0.11 all the way to $0.27 and on June 9, it also hit its 52-week high of $0.33 per share.
Enthusiasm was quite strong, but right now, less than two weeks later, it seems to have worn off a little bit. Trading volumes are not as huge and the stock performance is not really that consistent. Out of the last seven sessions, four ended in the red and yesterday, VPLM lost a tenth of its value while shifting nearly 2.3 million shares. Currently, it stands at $0.2321 per share which results in a market cap of around $205 million.
This sort of valuation seems to be a bit of a stretch when you consider the results recorded at the end of the first quarter. Here’s what VPLM had on March 31:
- current assets: $114 thousand in cash
- total liabilities: $33 thousand
- no revenues
- quarterly net loss: $141 thousand
The figures are far from perfect, but some people still believe that a big deal is indeed coming which should improve the future reports immensely.
Once again, this is all speculation, but the blackout period does suggest that something is indeed brewing. Unfortunately, a press release from earlier today tells us that investors will need to wait for a little bit longer before they can see what happens next.
About three hours before today’s opening bell, VPLM announced that the blackout period has been extended until July 3. Judging by the message boards, investors are not sure what to make of the announcement.
Some reckon that the extension is not really that much of a problem, but others are growing more and more skeptical about the whole thing. Considering the lack of any concrete information, this is somewhat understandable.
If you, however, are one of the people who think that VPLM is indeed about to strike a deal that could change the company’s future, you should be aware that over the next two weeks, the ticker will most likely be extremely unpredictable.
You should also bear in mind that more than 255 million shares of VPLM common stock saw the light of day between March 31, 2013 and March 31, 2014. The shares were issued either as a conversion of debt or in consideration for services and all of them were valued at levels which are way below the current market price.
