The last seven sessions can hardly be classified as successful for Wilhelmina International Inc (OTC:WHLM) since none of them brought any positive movement in the price of WHLM stock.
Yesterday’s session was no exception as long as the price is concerned. In terms of volume, however, WHLM stock enjoyed an unusually high interest on behalf of investors with more than 1.75 million shares changing hands, i.e 16 times higher than the daily average trading volume of 111 thousand.
Unlike other penny stock companies, WHLM is neither an active news provider, nor a frequent participant in promotional activities. The latest press release came up on Aug. 15 only to inform traders about the publication of the company’s financial report covering the second quarter of 2011. The report in particular revealed the following data as of Jun. 30, 2011:
- cash reserves in excess of $2 million;
- negative working capital of $2.1 million;
- $14.3 million in revenue as compared to $11.9 million in Q2 of 2010;
- net income of $1.3 million vs. $0.4 million for the corresponding quarter in 2010.
Although these figures seem good enough to suggest a bright future for WHLM, the company might still come across financial difficulties in case it fails to collect its accounts receivable in excess of $10 million. In the event of such a a failure, WHLM’s working capital gap will extend even further, posing new challenges ahead of the corporate sales department.
