Writer’s Group Film Corp. (OTCMKTS:WRIT) Promoted at Triple-Zeroes
If you are interested in a heated battle for factions of a cent, try your luck with Writer’s Group Film Corp. (OTCMKTS:WRIT), shooting up 166% this Monday to $0.0008 on volumes above $304,000, an absolute record. The stock is so obscure that the pumpers took it up free of charge, as an easy way to achieve the short-term boost that sub-penny tickers usually provide. The message landed last from Penny Stock General.
The seven emails in August came in on Monday and the campaign continued today, calling WRIT a unique buying opportunity- and indeed, the stock is immensely accessible. The group’s main purpose is listed as buying and licensing 3D concerts in cinemas worldwide, but recently the penny stock bought a subsidiary, Amiga Games, Inc. But let’s look at the company’s financial records to discern the real nature of the acquisition:
- $2,090 cash
- $14,540 total assets
- $227,945 total liabilities
- Zero revenues
- $1.3 million net loss
So far, WRIT looks like it gave access to Amiga on the OTC markets, and the contribution of the gamer firm is still not reflected. But any business results may lag seriously behind the movements of such an underpriced ticker.
WRIT may move toward the double-zero range, but usually underpriced stocks tend to gain and sink into obscurity again. And post-split, WRIT never went above 6 cents anyway, so driving out of today’s bottom may not be possible on such a small-scale email campaign. And Tuesday already showed a downward trend at market-open, which may quickly end the sensation for WRIT. Keep in mind that while sub-penny stocks quickly inflate, they also slash a great part of their value sometimes within a single trading session.
One can easily see how US Energy Initiatives, Inc. (OTCMKTS:USEI) managed to slide gradually even at double-zero levels, charting a “mountain of doom” after the brief day of enthusiasm. Even entering at a low 2 cents cost investors 90% of their money.
Premier Brands, Inc. (OTCMKTS:BRND) is another seemingly underpriced contender that even at $0.0042 keeps the downward momentum, no chance of rebounce. The ticker slid from 2 cents in just a few short days.
While WRIT could manage another strong day, without a constant boost the ticker is a threat for correction. If you need to pick a cheap bet, keep in mind that you must be able to also afford the corrections of sometimes more than 95%.