Well Power Inc (OTCMKTS:WPWR) Pumped Again

02WPWR.pngFrom $0.85 to $0.085 in just two and a half months. Unfortunately, we’ve seen this sort of performance from numerous penny stocks recently, and in most cases, it was the enthusiasm around the marijuana industry that brought the huge losses. Well Power Inc (OTCMKTS:WPWR)’s case is a little bit different.

The stock was pumped by Stock Tips who pocketed $4.1 million for the promotion and, as you can see from the chart, the excitement caused by Mike Statler propelled the ticker on a rather impressive run initially. Mr. Statler, who according to the disclaimers is a fictional character, often talks at some considerable length about how all his picks display similar performances, but he somehow fails to mention what happens once the pump dissipates. He probably won’t be too keen on talking about what happened to his latest pump, Pingify International Inc (OTCMKTS:PGFY) either. In case you haven’t heard, it got suspended by the SEC just a few days after the $6.5 million campaign started.

WPWR managed to avoid a suspension from the regulatory organs, but instead, it did something just as bad – it incinerated 90% of its market cap in less than three months.

Nevertheless, right now, WPWR is growing again. The ticker registered three consecutive green sessions and after a 65% jump yesterday, it’s standing at $0.19 per share. Some people probably think that there is a glimmer of hope for their lost investments, but is this really the case?

Unfortunately, the run is caused by nothing more than another paid pump. It has actually been going on for quite some time, but the effects at the beginning were not that impressive. Now though, the ticker is moving and the $793 thousand dollar volume registered yesterday suggests that lots of people are paying attention to WPWR once again.

Since the beginning of May, we have received nearly fifty emails from a range of promotional outfits and the total budget according to our database is $151 thousand. Some of the pumpers like Email Stock Picks suggest that WPWR is capable of going back to the $0.80 per share heights. Really?

There are a few positive things about the company. WPWR managed to complete one of the required payments under the licensing agreement with ME Resource Corp. (CNSX:MEC) and they also raised some money through a private placement.

As a result, the latest 10-Q (covering the period ended January 31, 2014) contains some figures under the assets section. Here’s a summary of the most important financials:

  • cash: $20 thousand
  • current assets: $30 thousand
  • current liabilities: $564 thousand
  • no revenue since inception
  • quarterly net loss: $33 thousand

You can see that while there are some assets, there are no revenues and for a very good reason. The revolutionary Micro Refinery Units that press releases and webinars talk about are simply not ready to hit the market.

We’ll see how WPWR is getting on once MEC launch them, but in the meantime, considering the risks associated with the 6MDNT.pngcurrent paid pump is absolutely essential. And there are quite a few of them.

Email Stock Picks, for example, the people who think that WPWR is going back to the $0.80 levels, were part of the promotion for Medient Studios Inc (OTCMKTS:MDNT) at the beginning of April. During the peak of the campaign, MDNT was hovering around $0.025 per share. Yesterday, forty-eight days later, it closed at $0.0022.

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