Well Power, Inc. (OTCBB:WPWR) Wipes A Third of Its Value
In our previous articles we warned readers that the stock of Well Power, Inc. (OTCBB:WPWR) was the target of multy-million pump and the only reason for the impressive climb was the artificial hype. No matter how big the promotional budget for a pump is hype alone cannot push a stock upwards forever and it seems that WPWR is starting to show signs of weakness.
During Friday’s session WPWR had quite a hesitant performance, a stark contrast to the previous four straight sessions of considerable gains. Last Monday WPWR opened at $0.43 while at the end of Thursday it had already risen to $0.829 almost doubling its share price. As we said Friday put an end to that and the article published on SeekingAlpha certainly played its role.
In it the author pointed out much of the same troubling facts around the company that we have been talking about – WPWR‘s dire financial state at the end of October when they had ZERO assets and the $4.1 million pump currently touting the stock. Despite the negative article the stock was able to hold onto all the pump-induced gains it had made and closed the week just 1% in the red at $0.82.
After the weekend though it didn’t have such luck and on Monday crumbled down by more than 28% falling to $0.58 per share. 12,1 million shares were dumped on the market. Early in the morning StockTips, the pumper carrying the promotion for WPWR, issued another email alert that sounds rather comical considering what happened during the trading day. They blamed short sellers for the red close on Friday and praised the stock for its staying power. Well, it appears that the power had all but dissipated just a few hours after the pump email was sent.
Pumps backed up by such huge amounts of money are usually capable of bouncing at least once after the first series of harsh corrections. That, however, doesn’t change the ultimate outcome of the promotion even in the slightest and StockTips’ previous two picks are evidence enough. Pan Global Corp (OTCMKTS:PGLO) is down by 80% from its pump highs while Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) has lost close to 84% of its value.
When dealing with WPWR you should also factor in the millions of extremely cheap shares bought by investors back in 2007, which after the 50-for-1 forward stock split are priced at approximately $0.0004. With all this in mind trading the stock should be attempted only after doing considerable due diligence and careful planning.
