Valmie Resources Inc (OTCBB:VMRI) Bleeds Some More
A couple of months ago, Valmie Resources Inc (OTCBB:VMRI) was playing with the $3.20 per share mark. Right now, about five minutes after today’s opening bell, it’s sitting at just $0.91. During yesterday’s session alone, it wiped out more than a tenth of its market cap and it dropped under the $1 barrier for the first time in a while. But who’s to blame?
Well, the pumpers should definitely take responsibility. What has to be one of the biggest promotional campaigns of this year started in March and since then, we have received in excess of one hundred and twenty emails on VMRI. A huge amount of money was spent and many different outfits (big and small) took part in the pump, but although they managed to send the ticker on a short climb, the pressure from the artificial hype eventually knocked it off its perch.
The promoters aren’t the only ones to blame, though. Willingly or not, the management team also tried to push the ticker in the right direction, but unfortunately, their press releases were simply too fluffy to have any sort of significant effect on the long term performance.
Take the announcement from yesterday, for example. A few minutes before Tuesday’s opening bell, VMRI proudly announced that they have met up with a few emerging companies in the UAV business during the Association for Unmanned Vehicle Systems International conference and said that they will try to acquire some of the smaller businesses. No names or other details were given, and once you take a look at the latest 10-Q, you’ll be left wondering if VMRI can complete an acquisition at all. According to the report, the company closed the month of February with the following financials:
- cash: $5 thousand
- current assets: $31 thousand
- current liabilities: $75 thousand
- NO revenue
- quarterly net loss: $135 thousand
These sort of figures don’t really suggest that VMRI is about to turn the unmanned aerial vehicle industry on its head and neither does Vertitek, the company’s newest subsidiary. There was a lot of noise at the end of March when VMRI managed to close the acquisition and the management team even said that the deal is “significant”. Yet, they didn’t file an 8-K form detailing it. Instead, they preferred to say how Vertitek is a “frontrunner” in the business. Vertitek, as you might have read in our previous articles, was incorporated a little over a year ago.
So, all in all, there were plenty of problems from the very get-go and each and every one of them had the potential to cripple the stock. The 10-Q was terrible, the pumpers were wreaking havoc with the performance, and the amount of fluff coming out of the company headquarters was quite astonishing, even by OTC standards.
One more thing could have contributed to the drop, however. We’re talking about the 59 million shares that were sold for less than $10 thousand a few years ago. The people who acquired them had (and still have) a massive profit opportunity on their hands and we won’t be too surprised if they have decided to seize it.
