World Assurance Group (OTCMKTS:WDAS) Sails to a New 52-Week High
After sitting virtually idle and registering unimpressive volumes for months on end, World Assurance Group (OTCMKTS:WDAS) exploded on investors’ radars during Tuesday’s session. In just six and a half hours, it managed to shift nearly 38 million shares while jumping up by as much as 625%. A similar volume and a small correction followed on Wednesday, but yesterday, it more than recovered.
Around 65 million shares changed hands in just six and a half hours bringing the dollar volume up to $1.23 million. The price movement was even more impressive. WDAS opened the day at $0.0055, started running right off the gate, and never looked back. When the closing bell rang, it was sitting at $0.0276 per share. That is an astonishing run for a ticker that was sitting deep in triple zero territory just a week ago, but what is the reason for all the commotion?
That’s not such an easy question. We’ve seen quite a lot of dormant tickers make similar jumps, but they are usually propelled by paid promotions or exciting pieces of news. In the case of WDAS, there isn’t any pumps currently running and the latest press release is dated December 10.
They did, however, publish a document (labeled Supplemental Information) through OTC’s Disclosure & News Service on March 12 and it would appear that investors seem mightily excited about the information contained in it. They might have one or two reasons to be happy.
According to the filing, WDAS‘ management team has gone through a complete overhaul. Sean McVeigh and Vincent Browne, the former CEO and CFO, have submitted their resignations and it is now up to a person called Fabio Galdi to steer the company to success.
The departure of the former officers is received by many as a massively positive development for WDAS and we can see why. Mr. McVeigh and Mr. Browne took the helm in February 2013, but the one-year chart shows that the stock performance under their control has been less than perfect. What’s more, looking at the old press releases, we can see that they might have been a touch too optimistic on one or two occasions.
In July 2013, for example, they announced that the AdKash app has recorded more than 90,000 downloads on Google Inc (NASDAQ:GOOG)’s Store and this was supposed to bring revenues in the report for the third calendar quarter. The Q3 statement came out four months later and it showed that the app hasn’t generated any revenues at all. It also revealed that as of September 30, WDAS had:
- no cash or current assets
- $234 thousand in liabilities
- a quarterly net loss of around $278 thousand
Hopefully, the changes to the management team should put all this behind the shareholders now. The company has a new CEO and a quick search reveals that he is quite famous. Fabio Galdi is also at the helm of Global Mobile Network and the readers of a website called Business For Home put him among the Top 5 direct selling CEO’s for 2012.
That said, there are some people who aren’t quite sure about Mr. Galdi and his business. Another website called Behind Multi Level Marketing published this article and as you can see from it, the author has some doubts.
All in all, the recent developments around WDAS might finally give the stock a chance to embark on a more prolonged run in the right direction. Even so, a potential investment still carries its risks and evaluating all the dangers is, as always, absolutely crucial.
Petrotech Oil & Gas Inc (OTCMKTS:PTOG) is another OTC ticker that went through some intense trading during yesterday’s session. The increasing promotional pressure, coupled with the excitement surrounding the new marijuana business resulted in 65% in gains and a dollar volume of more than $4 million. GreenGro Technologies, Inc. (OTCMKTS:GRNH)’s volume was even more impressive. In just six and a half hours, it managed to shift around $8.2 million worth of shares while adding another 23% to its price.
