Well Power, Inc. (OTCBB:WPWR) Flies Higher on Artificial Hype
Just two months ago Well Power, Inc. (OTCBB:WPWR) had a different name, a different ticker and a different business plan. In fact the company was nothing more than a shell with no real operations and ZERO assets according to the latest financial report. As of the end of yesterday’s session though their stock has reached $0.73 per share resulting in a market cap for the company of $78 million.
We would have liked to attribute the explosive run of the stock to some impressive progress made by the company but sadly that is not the case. WPWR is currently being the target of a multy-million pump that is lifting the stock upwards on nothing more than artificial hype.
The promotion is being carried out by the pumping outfit Stock Tips who expect to receive the sum of $4.1 million for their efforts. They are sending email alerts almost daily and yesterday was no exception. In it Stock Tips tried to convince investors that the current inflated share price of the stock is not a bad entry point for an investment.
Well, all it takes is one look at the performance of their past promotions for Pan Global Corp (OTCMKTS:PGLO) and Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) to know where WPWR is going when the emails stop coming. Keep in mind that those companies at least had some sort of assets.
Another major concern should be the 975 000 shares sold to 38 investors back in 2007. Those people paid a total of $19500 or just $0.02 for each share. Often stocks that are going to be future pumps undergo a forward stock split. WPWR was no exception and on January 6, a few weeks before the start of the promotion, they did a 50-for-1 forward split turning those shares to close to 50 million. Even if the people that bought them are currently holding a small fraction of that amount they still stand to gain millions at the current market price.
Pumps with such enormous budgets are known to continue for a prolonged period of time but ultimately they all end in the same disastrous way. If you don’t already have a position in WPWR it may not be a wise decision to chase after the stock. Do your own due diligence and weigh in all the risks before committing to any trades.