Where Food Comes From, Inc. (OTCMKTS:WFCF) Watches $2 on Rising Investors’ Interest

When old tickers grow tired and worn in promotions, a newcomer pops up among the most actively traded. This time it is Where Food Comes From, Inc. (OTCMKTS:WFCF), a stock that made a wild run on higher volumes since 2012, and is now at a two-year peak, looking at the $2 levels.

We’ve never met this food company before, and neither did we intercept a promotional email for it. So far, the company only posted SEC filings, and rarely a press release that hypes its achievements or potential. So this may be one of the few valuable penny stocks that pop up to attention. Let’s see the true potential of WFCF, before higher investor interest boosts the ticker to disproportion.

If you need to know the inspiration behind the latest Chipotle Mexican Grill advertisement cartoon that went viral, WFCF may be the answer. The company serves several large food companies by seeking out and providing information on food sources, tracing the farm origins of beef, pork and poultry. The recent interest in natural foods and the concerns around GMO may also be driving demands for the company’s services. This led to the following financial results:

• $1.49 million cash

• $3.5 million total assets

• $879,000 total liabilities

• $1.2 million revenues

• $56,625 net loss

While the earnings and net gains temporarily scaled back in the last quarter, WFCF has a solid business spanning 18 years, and a new auditing program for the humane treatment of animals. So any glitches may be temporary, and not affect the stock price in a noticeable, direct way.

We will be tracking WFCF to see where it goes now that it has been spotted by Seeking Alpha. So far, investors’ forums are less active than for other tickers.

In the past days, we traced several active penny stocks that popped among the most actively traded without the boost of promotions. One of them was Soligenix, Inc. (OTCBB:SNGX), a pharmaceutical company that would produce promising vaccines and anti-toxic treatments in case of emergencies. The ticker is currently struggling with the $2 levels, where it rose without the boost of promoters.

But promising does not always cut it. Virtual Piggy, Inc. (OTCBB:VPIG) crashed from above $1.40 to 87 cents in a single day, as investors lost patience with the stock that drifted sideways for a long time.

If you need to join WFCF, keep in mind that peak prices may mean a correction or a breather may come soon. Such corrections are often significant within a day, and it is best to stay away unless you can afford them.