Yippy Inc (OTCMKTS:YIPI) Strikes a Deal and Pops
Over the years, Yippy Inc (OTCMKTS:YIPI) has acquired and developed numerous pieces of technology and they all seem very clever. The management team go to some great lengths to explain how both regular internet users and enterprises can benefit from the powerful search engine platform and the rest of the company’s offerings. Sadly, people are not too keen on trusting them blindly.
And it must be said that some of YIPI‘s press releases over the years have been more optimistic than was strictly necessary. Take the one from March 20, 2014, for example. In it, the management team provided guidance on the company’s operations and said that the revenues for the fiscal year ended May 31, 2014 should sit at about $1.3 million. The actual report for the aforementioned period came out several months later and the revenue figure in it stood at just over $1 million. In other words, YIPI missed the guidance by almost 30%.
Perhaps more worryingly, the sales have been on a rather steep decline since then. The revenues for the first three months of this year, for example, sit at $128,850 compared to the $348,459 logged during the same period of 2014 – a massive 63% drop. The rest of the statement recorded at the end of March isn’t particularly encouraging, either. Here’s a summary of the figures:
- cash: $12,143
- current assets: $459,657
- current liabilities: $449,181
- quarterly net loss: $80,192
If YIPI‘s technology really is that clever, then people and companies apparently haven’t heard of it, and that, in turn has put the company into some serious financial troubles. Some penny stock investors will probably notice that unlike a vast portion of their OTC counterparts, YIPI have refrained themselves from diluting their stock into oblivion, but unfortunately, this hasn’t been enough to turn the ticker into a market darling. Trading was pretty slow over the last few months and if you look closely into the historical records, you’ll even notice a few zero-volume days.
That, however, might just be in the past. Yesterday, YIPI issued a press release which suggests that they have finally found the exposure they’ve been looking for for so long. Globalstar, Inc. (NYSEMKT:GSAT) have apparently decided to use YIPI‘s EASE 360 platform in order to give their clients quicker access to the internet when there’s no cellular coverage. Jay Monroe, Globalstar’s CEO, said that thanks to YIPI‘s “highly unique software solution” they will be able to better leverage their satellite services.
The press release didn’t say exactly how big the benefits for YIPI will be, but apparently, investors reckon that they will be massive. Yesterday, in a matter of just six and a half hours, people traded more than 665 thousand shares which resulted in a dollar volume of about $267 thousand. At the same time, the price was pushed up by about 46% and the ticker closed the session at more than $0.40 per share for the first time since October.
The news is definitely good, but is it good enough to warrant such a huge spike in the price? That, of course, is up to you to decide. Bear in mind, however, that, as is often the case in Pennyland, there might be one or two things that could throw a spanner in the works.
An entity called Magna Group (more information about the person behind it and its business can be found in this Bloomberg article), for example, is owed some money and there is an ongoing litigation which, according to the latest financial report, is in the discovery stage. If the litigation results in debt conversion (considering Magna’s involvement, we won’t be too surprised if it does), YIPI‘s track record of mininal dilution might be ruined. The share price will be put under pressure as well.
