World Moto, Inc. (OTC:FARE) f.k.a. Net Profits Ten Inc Flies, Worth $112 Million?
Despite all warnings and the lack of real achievements, yesterday World Moto, Inc. (OTC:FARE) f.k.a. Net Profits Ten Inc soared to a new high.
The Awesome Penny Stocks (APS) pump closed up 18.66% at $0.3001. 71.5 million shares changed hands – the second largest volume since the start of the pump.
On the information page for FARE on OTCMarkets the number of outstanding shares (OS) is about 146 million, however, that number is not the actual the actual OS. In two SC 13D forms it is revealed that as of November 14, 2012, there were 374,329,445 shares of issued and outstanding shares of FARE. At $0.3001 per share that makes for a market valuation of roughly $112.3 million.
Now let’s take a look at what FARE has to validate such a valuation:
- $188 thousand cash (from sale of stock)
- $189 thousand total current assets
- $100 intangible assets (intellectual rights to Moto Meter)
- $18 thousand total liabilities
Even for a brand new start-up this would be a questionable valuation, and as I pointed out in my previous article the idea isn’t exactly brand new.
Yesterday FARE announced the opening of a regional office in Lagos, Nigeria. Curiously enough, no address, phone or any other way to contact said office was provided.
Given that so far the company’s accomplishments amount to selling some stock, saying it has “selected” a manufacturing partner and issuing press releases, traders should be able to make out whether there is any real value in FARE beyond the APS pump.
If you feel you have to play this, be very careful not to get trapped when the dumping starts and the stock crashes. Those who believed TagLikeMe Corp (PINK:TAGG) was something more than a pump job, should know what that feels like.
