Wizard World Inc (OTCBB:WIZD) Disappoints Investors Again

Most people assume that if a company has some sort of relatively solid operations, its stock will perform well. And indeed, this sounds like the most logical thing in the world. Logic doesn’t always apply in Pennyland, however, and Wizard World Inc (OTCBB:WIZD) is here to prove the point.

You don’t really need to be an expert to see that the ticker’s performance is not exactly consistent. WIZD has had more than a few slip-ups since the beginning of the year and although, generally speaking, it appears to be able to recover relatively well, the recent highs we’ve seen are way below the $0.95 levels WIZD occupied a few months ago.

Liquidity is also major problem and it would appear that volume is actually the enemy. The ticker tends to experience some increased trading every now and then, but instead of pushing it up, the spikes are actually dragging it down.

The performance from Friday is a classic case in point. In a matter of six and a half hours, investors traded more than 650 thousand shares which resulted in a dollar volume of about $256 thousand. Unfortunately, at the same time, WIZD lost nearly a quarter of its market cap and it stopped at a breath under $0.44 per share.

While we’re on the subject of volume spikes, we must say that they tend to come with little or no warning. There was absolutely nothing to suggest that Friday’s session will be as active as it was, for example, and the same can also be said about the previous days of increased activity.

So, the stock performance definitely leaves a lot to be desired. Unfortunately, WIZD is having set backs when it comes to the operations as well. Here, for example, is what the company recorded at the end of Q2:

  • cash: $4.6 million
  • current assets: $6.7 million
  • current liabilities: $5 million
  • quarterly revenues: $7.6 million
  • quarterly net loss: $1.8 million

Indeed, unlike many other OTC companies, WIZD actually has some cash in the bank and the revenues are more than respectable. There is also growth in sales on a year-over-year basis, but unfortunately, a net income from Q2 of 2014 was turned into a net loss twelve months later.

Revenues from the ConBox started flowing during Q2 and the management team assured us during the Liolios Gateway Conference that with some new offerings coming in the next few months, the future should be brighter.

Whether investors are ready to trust them with their money, however, is another matter.

About ten minutes into today’s session, WIZD is sitting at $0.48 (about 9% in the green).

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