Well Power Inc (OTCBB:WPWR) Gets a $4.1 million Pump from Stock Tips
A month ago, the company that we now know as Well Power Inc (OTCBB:WPWR) was called Vortec Electronics, Inc. According to the descriptions available on the internet, the small cap entity was trying to develop a revolutionary fully automated wok for frying rice, but in reality, it was just a shell with no assets, no revenues, and no volume on their stock chart.
If the latest 10-Q is to be believed, they still have no assets, but on Friday, the ticker managed to shift more than $636 thousand worth of shares. The price dropped by a staggering 45%, but we can see that the buzz on the message boards is huge and lots of eyes are now fixed on WPWR. So, what will happen next?
Only time will tell, but we might be in for an interesting week. Forty-eight hours after the drop, we received an email from Stock Tips who announced that WPWR is their newest pick. As you probably know, Stock Tips has been one of the most prominent players in the promotional world since the demise of Awesome Penny Stocks and, looking at the fine print below their latest emails, we can see that they are also among the best paid outfits. According to the disclaimer, a third party called Laluna Services has set aside a mind-bending $4.1 million for the awareness campaign on WPWR.
As is often the case with Stock Tips’ promotions, touting is done through articles on advertorials such as invests.com, through videos narrated by Mr. Mike Statler (editor of Stock Tips), and through emails.
WPWR is officially the most expensive pump in Pennyland at the moment, but will it be the best-performing one?
If this is to be decided by the company’s fundamentals, the ticker is headed for disaster. As we mentioned already, the latest 10-Q states that the company has no current assets and no revenues. It also reveals that they have $105 thousand in current liabilities and a quarterly net loss of $2,000.
The whole brouhaha is created by an agreement WPWR signed a couple of weeks ago. Apparently, they received an exclusive license to distribute a line of clever devices called Micro Refinery Units (MRU) in the state of Texas. Mr. Statler is prepared to spend twelve minutes talking about how these pieces of machinery are going to make you very rich, but let’s take a more realistic approach and see if things really are as positive as the pumpers think.
The entity that developed the MRU’s and granted WPWR the life-changing license is called ME Resource Corp. (CNSX:MEC). Fortunately, MEC is a publicly traded company which means that you can take a look at their financials and see how well the sales of the magical devices are going along. We did just that and we saw that they haven’t registered a dime in revenues.
Will WPWR miraculously manage to get the whole thing going as Mr. Statler suggests they will? We’ll leave it up to you to decide.
In the meantime, make sure you check out WPWR‘s initial public offering. As you can see from the document, back in 2007, the company sold 975 thousand shares for just $19,500. When you take the effects of the 50-for-1 split into account, you’ll see that the number of discounted shares now stands at nearly 50 million. The filings say that this stock was distributed among thirty-eight shareholders and if they still own it, they could be in for the profit opportunity of a lifetime.
Will they take advantage of it? We’ll probably know the answer very soon.
