W Technologies Inc (OTCMKTS:WTCG) Slips Once Again
You don’t need to spend hours and hours researching W Technologies Inc (OTCMKTS:WTCG) to know that there are quite a lot of things worth considering before putting any money on the line.
Let’s start with the stock performance which is anything but perfect. If you have a quick look at our database, you’ll see that there was quite a big promotional campaign running for WTCG back in December 2012. Numerous pumpers jumped in and promised traders that a potential investment in the ticker presents a massive opportunity for a profit, but, as is often the case, reality turned out to be a bit harsher. In fact, WTCG managed to obliterate nearly 90% of its value in less than a month turning the campaign into one of the worst promotional failures we have ever witnessed.
The aftermath wasn’t brilliant as well. The ticker was left deep in double-zero territory and the dismal trading volumes suggested that nobody is going to get it out of there. The management team thought that the only way they could spark investors’ interest in WTCG is to make the share price more attractive. That’s why, a 1-for-5,000 reverse split was effectuated on May 23, but once again, it appeared that no one cared.
The ticker remained virtually dormant throughout the next few months and it wasn’t until a couple of days ago that we finally saw some stirring up. What caused it?
Well, there were a couple of optimistic press releases that certainly grabbed some attention, but worryingly, it would appear that the pumpers have picked up the ticker once again. In fact, they tried to give the price a boost back in mid-October when Investor News Source (who disclosed no compensation) sent us a couple of emails. Once again, investors didn’t seem bothered at all.
On November 8 and November 10, however, we received two more alerts. This time the promotional outfit is called Penny Stocks Profile and according to the disclaimer, the people standing behind it have received $10 thousand for their efforts. Once again, the immediate effects of the campaign were nowhere to be seen. Trading volumes at the beginning of last week were just as disappointing as the ones witnessed throughout the better part of 2013.
Friday, however, was a little bit different. More than 663 thousand shares changed hands resulting in a dollar volume of around $334 thousand. People were certainly paying attention, but the price movement failed to impress. After quite a lot of fluctuation, WTCG finished the day at $0.36 – 21% below Thursday’s close.
We must point out that this happened five days after Penny Stocks Profile’s latest promotional alert which means that we can’t be sure what the influence of the pump was. Despite this, there isn’t any other immediately obvious factor to explain the sudden and violent drop.
But what if WTCG manage to stay away from the pumpers in the future? Will their operational success manage to result in some sort of organic growth?
At the moment, the answer is “no” simply because there isn’t any operational success. In fact, having seen the annual report for the twelve months ended July 31, we’re somewhat struggling to see how they manage to be so optimistic in their press releases. Here are the figures found in the statement:
- NO current assets
- total liabilities: $1.3 million
- yearly revenue: $259 (a 96% decrease year-over-year)
- yearly net loss: $1 million
We reckon that the people steering WTCG at the moment should think about securing some sort of financial stability for the company before making any claims about the future success. If they manage to do it and if they succeed in protecting the ticker from future paid pumps, they might just turn the tables in their favor. Until then, WTCG remains a risky choice.
