WORLD ASSURANCE GROU (OTCMKTS:WDAS) Going Down After Pump

After World Assurance Group (OTCMKTS:WDAS)’s 3 successful trade sessions in which their stock went up 20% we see that today’s trading starts in a different direction.

This may be due to the fact that WDAS were pumped in the above mentioned trading sessions. The pump, however, is over (for now) and the consequences of that are evident. In today’s trade session WDAS‘s stock opened at the $0.0060 at which it closed yesterday, however, quickly things began to worsen.

Just half an hour into trading and their stock managed to drop 16% down to $0.0050. The stock of WDAS isn’t traded at a very high price, neither at very high volumes, but it still manages to make a decent trade value of $5 thousand to $20 thousand per trade session. Let’s take a moment to remind you the financials of the company and see if they can back up the market value of $1.6 million that the company has.

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

We explained about the credibility of the claim that WDAS have current assets of $1.5 million in the form of intellectual property in our previous article about them. What we wanted to talk about today was their latest press release filled with optimistic projections about their smartphone advertisement application.

AdKash was formally launched in the Google Play Store earlier this year. It’s basically an application which is (to us at least) annoying, because it displays full screen ads whenever you receive an incoming call. You get 5 cents for each add you look at. The questions is: where are they going to get the money to pay the people when they have $0 in cash. The latest press release is about their aim to have 20 million paid advertisement views per month. Thats $1 million distributed between the people who would view them.

The deal is that they really can’t compete with the advertisement opportunities that Google provides, and we also think that the price of 5 cent’s per view will be steep for most companies that need advertisement. When you put on top of that the cut that WDAS will want for them it starts to seem unreal.

Be sure to do your due diligence if you decide to invest in this rather risky stock and weigh out all the risks before jumping in their boat.