Wizard World Inc (OTCBB:WIZD) Crashes Horribly
Wizard World Inc (OTCBB:WIZD) managed to retain and even gain some ground in the first three sessions this week, in spite of its of low openings, but yesterday it finally lost its footing disastrously. Why?
To all outward appearances, it seems like this crash is the natural consequence of the fact that the company doesn’t have all that much going for it. Although it has more money and revenues than most other OTC Markets penny stocks in the same sector, WIZD‘s financial report for Q2 2015 is certainly not an inspiring sight:
- Cash – $4.55 million
- Current assets – $6.66 million
- Current liabilities – $4.98 million
- Quarterly revenues – $7.44 million
- Quarterly net loss – $1.8 million
While not actually terrible, especially by the meager standards of the OTC Markets, these numbers certainly fail to impress.
This is why the things that most often attracts investor attention about the company are the press releases and social media statements that it keeps pumping up.
Another thing that WIZD has going for it is the fact that it hasn’t diluted its stock in ages.
However, none of these things justified the market cap that WIZD had just a couple of days ago, which was as ridiculous as $31 million. Currently, said market cap hovers just over $21 million, and considering the company’s persisting failure to make ends meet this year, that may be a little high as well.
This is why investors would do well to be careful and diligent when dealing with WIZD stock.