One World Holdings Inc (OTCMKTS:OWOO) Crashes Horribly
One World Holdings Inc (OTCMKTS:OWOO) lost a third of its market cap on Friday, dipping below the once cent mark once more.
It would be something of an understatement to say that this crash was expected. It was clear from the very start that OWOO‘s ascent would be cut short sooner rather than later, even with all the announcements about the “Prettie Girls!” that the company keeps pumping out. Why?
Well, at the end of the day, it all comes down to what the company’s actual state is at the moment. If a company’s market cap outpaces it, the ticker is bound to crash sooner or later – and even superficial due diligence on OWOO is enough to determine that this was exactly what had happened to the company. One glance at the numbers in its latest financial report leaves a bad taste in the investors’ mouth:
- NO CASH ON HAND
- current assets – $608 thousand
- current liabilities – $25 MILLION
- quarterly revenue – $833 thousand
- quarterly net loss – $8 MILLION
Things just get more depressing as you dig deeper and deeper, with possibly the biggest red flag being OWOO‘s horrible share structure history. Suffice it to say that 320 MILLION out of OWOO‘s nearly 370 MILLION shares outstanding have been issued between November 2014 and August 2015.
The fact that most of that stock was issued at an average rate of $0.004 per share makes the objectively ugly picture we’ve painted so far situation appear even darker and more revolting. On top of all that, add a further 29 million shares issued at a price of $0.001 a pop in August 2015. This is what an investor is buying when he commits to OWOO‘s stock.
Of course, we are not saying that there is no money to be made from trading OWOO – which is evidently not the case. However, investors should always go into such trades knowing full well the risks that the company’s pernicious activities represent.