Wizard World Inc (OTCBB:WIZD) Plunges Further Down The Chart
It seems that whenever the stock of Wizard World Inc (OTCBB:WIZD) registers a day with an increased interest from the market it invariably sinks lower down the chart. Yesterday’s session was definitely not an exception.
When early in the morning yesterday WIZD announced that none other than Mike Tysons is going to attend the company’s comic con in Columbus on September 19-20 it definitely caught investors’ attention and more than 1.2 million shares got exchanged during the session. For comparison the 30-day average volume for the stock stands at less than 150 thousand shares. As we said, however, the intense trading did not mean that the stock is surging to new highs. Instead WIZD wiped close to a third of their value and closed at $0.339 per share. So far in a little over a month the ticker has dropped down the chart by approximately 64%.
Usually when a pennystock displays such a depressing chart performance it means that the company is facing some serious troubles. This is not the case with WIZD though. The company boasts some truly impressive financials finishing the first quarter of the year with:
• $5.3 million cash
• $7.8 million current assets
• $5.3 million current liabilities
• $6.1 million revenues
• $982 thousand net loss
That is right, WIZD have sufficient cash reserves, positive working capital of around $2.5 million and on top of that generated more than $6 million in revenues during the quarter. It is true that some of the numbers found on the balance sheet showed signs of deterioration – WIZD finished the same quarter last year with a net income $692 thousand, but according to the company the decrease was due to the increased number of events planned for this year. For the first quarter of 2015 WIZD held 7 events up from the 3 held in first quarter of 2014.
The company is also diversifying its revenue streams by launching the the streaming platform ConTV and the monthly subscription-based box service called Comic ConBox. Last week WIZD announced the launch of its CON RADIO which is going to feature a wide array of shows – lifestyle, horror, Q&As with celebrities, video games, and sports entertainment.
The next quarterly report should be submitted by mid-August and it will show what effect these initiatives have had on the balance sheet of the company. Although WIZD lack many of the more serious red flags usually associated with pennystocks you should still do your own due diligence before committing to any trades involving their stock.
