Steampunk Wizards Inc (OTCMKTS:SPWZ) Gets Cut Even Shorter
Steampunk Wizards Inc (OTCMKTS:SPWZ) took a real nasty beating in yesterday’s session, losing 31.97% of its market value over the course of a single day of trading.
It should be obvious for anyone that has taken the time to do actual due diligence on SPWZ why that happened. The reason is simple – SPWZ should not have been perched as high as it was in the first place.
We’re talking about a company whose latest filing looked like this:
- Assets – $23 thousand
- Liabilities – $53 thousand
- NO REVENUE
- Net loss – $392 thousand for the first five months of operations
Simply put, these do not look like the financials of a company that deserves a market cap of $27 MILLION. Even after all its consecutive crashes, one share of SPWZ common stock is worth exactly $1.
Suffice it to say that this is an awful lot to ask in return for owning a share of a company that has no revenues to date, in spite of its product having allegedly been downloaded between 10000 and 50000 times. Something about the whole situation simply doesn’t add up.
True, the OTC Markets is hardly a place where everything that happens makes immediate and obvious sense. However, in light of SPWZ‘s lack of achievements, its latest crash seems entirely reasonable. Indeed, it wouldn’t be all that surprising to see the ticker slump in double digits in the next few days as well, likely ending up in single penny territory.
Of course, this does not mean that there is no money to be made from SPWZ – while the company certainly doesn’t look like it is doing much, it is entirely possible for the ticker to bounce if SPWZ gets some positive exposure.
However, traders need to be extra careful and vigilant when playing SPWZ, because a moment of hesitation or a stroke of ill luck could spell disaster for anyone still holding the bag when it all goes sour.
