Wizard World Inc (OTCBB:WIZD) Suffers Another Disastrous Drop
Wizard World Inc (OTCBB:WIZD) looked like it was doing well at the beginning of yesterday’s session, but ended up losing 28.96% by the time the closing bell arrested its descent. What gives?
There are a couple of factors that affect OTC Markets tickers in such a violent and brutal manner – and interestingly enough, WIZD doesn’t seem to be affected by any one of them.
It hasn’t been the target of a pump campaign that failed. It hasn’t made any horrible announcements – or any announcements at all, for that matter – in quite some time. Its filings say nothing about toxic funding, so it’s unlikely that this particular bane of investor value is at play here. So what pushed it down the charts?
This is why basic logic and OTC markets experience pins the blame for yesterday’s crash, as well as and every other of WIZD‘s crashes, on the last one of the usual suspects – WIZD‘s own mediocrity.
What do we mean? Well think about it. Before closing nearly a third of its market cap, WIZD‘s market cap was almost as high as $30 MILLION. That seems unreasonably high for a company, whose latest financials looked like this:
- Cash – $4.55 million
- Current assets – $6.66 million
- Current liabilities – $4.98 million
- Quarterly revenues – $7.44 million
- Quarterly net loss – $1.8 million
In spite of the amount written down under “cash”, those numbers are hardly an inspiring sight, even by the exceedingly low standards of the OTC Markets – so it’s hardly surprising when investors decide to liquidate their WIZD position and move on. The heavy selling that usually ensues at such times may well be the reason for the company’s repeated stumbles.
Long term investors and opportunistic traders wanting to make money out of trading WIZD had better keep that very real possibility in mind.
