Well Power, Inc. (OTCMKTS:WPWR) Crashes Before The Weekend
It seems that the artificial hype that managed to lift the stock of Well Power, Inc. (OTCMKTS:WPWR) lost its power and on Friday the company crashed by more than 17% closing at $0.167. Although the 4,1 million traded shares were just half of the amount from the previous session they still resulted in a dollar value of $726 thousand putting WPWR among the most traded pennystocks.
Just a few months ago WPWR were touted by the infamous pumper StockTips who received more than $4 million for their service. Even though on April 10 they moved on to their next pick the pump for WPPR is being kept alive by countless smaller pump outfits despite the company losing more than 80% of its value. The last email alert was sent by Penny Stocks Forever who bagged the disclosed compensation of $9000.
We warned our readers that all of the red flags around the company are still there. WPWR do not actually own the technology they have been talking about in their PR. They have entered into a licensing and distribution agreement with the company manufacturing the Micro Refinery Units for the state of Texas. In order to keep the licensing rights WPWR had to pay $400 thousand in two installments – $100 thousand and $300 thousand. For now only the first payment has been announced as completed. In addition the company will have to buy at least to MRUs, each valued at $800 thousand, by the end of the year.
At the same time according to the latest quarterly report at the end of January the company had:
At the same time according to the latest quarterly report at the end of January the company had:
• cash: $20 thousand
• current assets: $30 thousand
• current liabilities: $564 thousand
• no revenue since inception
• quarterly net loss: $33 thousand
• current assets: $30 thousand
• current liabilities: $564 thousand
• no revenue since inception
• quarterly net loss: $33 thousand
The poor financial state is not the only problem though. Investors have to also keep in mind that back in 2007 925 thousand shares were sold at just $0.02 each. Due to the 50-for-1 forward split performed just a few months ago that number 
turned into 48 million extremely cheap shares that could bring millions to their owners.
turned into 48 million extremely cheap shares that could bring millions to their owners. Friday also marked the sixth potstock suspended by the SEC in the past three months. This time the Commission stopped the stock of Fortitude Group Inc, Inc (OTCMKTS:FRTD) from trading due to “lack of current and accurate information”. The company will resume trading on June 9 on the Grey Market and will most likely suffer a massive drop in share price.
