Wireless Xcesories Group, Inc. (PINK:WIRX) Touts a Successful Year
Trust a pink sheet to make a real splash. After a single glowing press release citing amazing sales, Wireless Xcesories Group, Inc. (PINK:WIRX) jumped more than 39% to $1.66, and this on record volumes. Immediately, this draws attention to an OTC warning- that the company may not be releasing material information, and that such information could materially affect the markets, if acted upon. 
We have not intercepted a promotion for WIRX, and as the stock is very sporadically traded, with very low volumes, the low interest is explainable. Also, the company’s business model is in no way new or original- it sells phone batteries, adapters and other accessories. While this may be an active business, it is difficult to see how it supports a 6 million dollars market capitalization. The company is also an alternative reporter, and its data are hardly relevant, dating back a few years. 
However, in a press release, WIRX states its sales for the last quarter of 2012 almost doubled, and full year sales are up 80%. It is practically impossible to verify the information, but we have to note that the press release coincides with the noticeable spike in the graph.
WIRX claims $12 million of quarterly revenues, and $40 million in annual sales. Operating income is upward of $806,000 for 2012, after a loss of more than $163,000 for 2011. Those are encouraging data that mean the few years of obscurity were not spent in idleness, but in building a solid cash cow business. WIRX states it has upward of $8 million working capital, which may mean the company is quite underpriced at the moment.
Still, a more active trading period may cause fluctuations in the price, which would also happen faster. As it is usual with companies that rise, a correction by profit taking usually takes place a few days into the trend.
So far, WIRX bears a few warning signs, but is not a classical, baseless claim at greatness. A more risky and far-fetched bet would be currently promoted Quantum Materials, Corp. (OTC:QTMM), a company that aims to develop and deliver quantum technology to other businesses. This the company aims to do with $15,000 of assets and cash, plus $3 million in debt. However, at its low price of around 6 cents, it is mostly a short-term bet, and pumpers add to the hype.
In the case of WIRX, the new trading session will show if the current price levels are sustainable, or if the company will aim for new heights, being underpriced. But it is best to expect the worst and not invest funds you could not afford.
