Well Power Inc (OTCBB:WPWR)’s Pump is off to an Explosive Start

2WPWR.gifAs part of the pump for Well Power Inc (OTCBB:WPWR), Mr. Mike Statler, the editor of Stock Tips, took the time to produce a twelve-minute video which is supposed to draw investors’ attention towards the ticker.

As you might imagine, he talks at some considerable length about the enormous upside potential that (he thinks) can be found in WPWR, but not before he tells you a few things about the stock market. Around four minutes in, he advises his subscribers to stay away from the national exchanges and calls Wall Street a “snake pit“. He claims that it’s all “an insider game” and that the media gets paid to promote some companies while it leaves the others in the dust. According to Mr. Statler, there’s no such thing in the microcap world.

We find this part of his expose particularly amusing since, just a few inches below the video there’s a disclaimer which states that Mr. Statler and the rest of the people standing behind Stock Tips have received $4.1 million in order to promote WPWR.

Despite this rather interesting detail, Well Power’s stock hit the ground running yesterday. It opened the session at $0.1999 (a mind-bending 263% above its previous close), ran as high as $0.45, and then tumbled down to more manageable levels. WPWR closed the day at $0.325 which is around 490% above Friday’s value and registered some extreme volumes – more than 34 million shares changed hands resulting in a total trade value of nearly $10 million.

The big question is: “What happens next?”.

It seems that the regulatory organs have been busy this morning. One of the most actively pumped OTC companies from the last month or so, Centor Energy Inc (OTCBB:CNTO), received their suspension order just a few minutes before the opening bell and if investors learn about the tragic end of this promotion, some panic could ensue. About twenty minutes into the session, however, they seem oblivious and WPWR has already added a further 10% to its value.

That said, we can safely say that the ticker dodged a bullet today. The astronomical promotional budget and the colossal dollar volume from yesterday are two factors that are drawing in quite a lot of attention. If, for some reason, the regulatory organs decide to take a closer look at WPWR, they would see that someone has spent a ridiculous amount of money to tout a company that has the following figures in its financial statement:

  • total assets: $0
  • total liabilities: $105 thousand
  • revenue since inception: $0
  • quarterly net loss: $2 thousand

The SEC might also notice that, at the moment, WPWR‘s future is dependent upon a licensing agreement for a product that is still under development (something Mr. Statler conveniently fails to mention).

2WPWR_logo.pngAnd they might also take a look into the company’s first filing which will inform them that quite a lot of stock was sold at a huge discount when the company was going public back in 2007.

Of course, the SEC might also decide to let the whole thing continue and leave WPWR alone. Even if they do, you should definitely consider all the risks carefully before putting any money on the line.

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