Writ Media Group Inc (OTCMKTS:WRIT) Bounces
tags: WRIT
During yesterday’s trading the stock of Writ Media Group Inc (OTCMKTS:WRIT) soared upwards and managed to reach a close at $0.87 for a massive daily gain of exactly 50%. The impressive bounce was sparked by a new PR that was published before the start of the trading day. In it the company announced the launch of the beta phase of its CrypStock crypto-currency exchange. Last week WRIT announced the launch of their own digital currency called Pelecoin.
Despite the amazing gains from yesterday those investors that decided to buy into the stock just four sessions ago when WRIT were trading at more than a dollar per share are still facing significant losses. In our articles we have been warning you that the red flags surrounding WRIT are both numerous and extremely serious and that caution is strongly advised.
Let’s start with the fact that currently the market cap of the company stands at $22.3 million. How realistic is this valuation, though? You should be able to answer that question for yourselves after taking a look at the financial state of the company at the end of 2015. According to the quarterly report covering the period ended December 31, 2015, back then WRIT had:
• $264 cash
• $879 total current assets
• $888 thousand total current liabilities
• ZERO revenues
• $120 thousand net loss
We should have been able to see a more up-to-date picture of the company’s financial state in the annual report that was supposed to be completed by the end of June. WRIT failed to do so and instead submitted a notification of late filing which gave them 15 more days to finish the report. In addition to the truly abysmal balance sheet investors have to also worry about the outstanding convertible debt of the company some of which can be turned into common shares at discounts reaching 45%.
When deciding whether to put any money into WRIT‘s stock or not you should take into account the impact of the paid pump that has been touting the company. The promotion is being carried by the affiliates of Finest Penny Stocks. Quality Stocks, who have received from WRIT $16 thousand in cash and 40 thousand restricted shares for 180 days investor relations and social media services, are also doing their part in generating as much artificial hype as possible.
