WORLD ASSURANCE GROU (OTCMKTS:WDAS) Carried Up By Paid Promoters

Yesterday was a bit of a break for the people who have invested in World Assurance Group (OTCMKTS:WDAS) as their stock managed to compensate for the 33% that it fell the day before.

WDAS‘s stock yesterday registered a 22% uprise as they closed at $0.0055 compared to the $0.0045 they ended up with at the previous session’s close. Their stock is continuing to move in an upwards direction even today as they opened at $0.0060.

The price per share in today’s session even reached a high of $0.0070, but it wasn’t long until it fell back down to $0.0060 where it is at the moment. It seems that the pump will unfold today, because in just 40 minutes of trading they have almost reached their avarage of 1.5 million shares having 1.4 million traded shares.

We are expecting a day with action as all the factors are pointing in that direction. In this line of thoughts, the movement in price may start to go in a downwards direction with all this stock being dumped as insiders try to make a profit. Let’s not forget that WDAS are set up for a long future of dumping as they have only 267 million outstanding shares out of 5 billion authorized.

The total market value with today’s stock price of WDAS is $1.2 million. Let’s take a quick peak at their latest quarterly report covering the period ended March 31, 2013 and see if their financials can back up their value.

• cash: $0
• current assets: $1.5 million?
• total liabilities: $156 thousand
• revenue: $0
• net loss: $44 thousand

Seems better than their last report in which they had $0 in current assets doesn’t it? Well in fact when you look more closely it doesn’t. These $1.5 million are in the form of intellectual property that was acquired with the acquisition of Cellad Inc. in February this year. Now, you will ask what is wrong with that and we will tell you.

The deal is that this estimate for the value of the intellectual property wasn’t carried out by an expert external source, but is rather based on the expectations of WDAS‘s management for the future revenues that may be generated from Cellad’s products, or in other words: They are saying that they may make a lot of money from the annoying app that they made for android, which will be displaying full screen advertisements on your phone when you get an inbound call. The irony is that this app will supposedly give you 5 cents for every viewed add, however, we can’t see where this money will come from.

All in all WDAS is a risky stock to invest in so be sure to do your due diligence before and weigh out the risks before you decide to do so.