Since the beginning of the year, shareholders of Wound Management Technologies,Inc.(PINK:WNDM) have been celebrating the strong uptrend on the stock market. What is more, not only is there now a clear path of sustainable growth since January, but instead of slowing down, the pace at which the stock price rises is even increasing. But why would a company doing so good move to the pink sheets?A few weeks ago, WNDM was still quoted as OTC:WNDM, without excessive daily trading volumes and with the price steadily climbing everybody was happy. Then, we come to this week, when even a paid promotion came out to start a trading frenzy that would additionally push the price higher to form a 100% increase since the beginning of the year. Monday`s session closed at $0.78.
The thing is that besides entering the watch list of investors looking for good short-term deals, the company also falls into another, not very appealing, list. This was the list of companies, which failed to meet the set of standards for reporting to the SEC. “Failure to comply with Rule 15c2-11”. A total of 622 OTCBB companies experienced the consequences of this in February, among them Would Management.
The above, however, had no impact whatsoever on the stock market for WNDM. Instead, the joy ride continued. It will be no surprise if this stock hits $1 soon, even though it is not very easy to do the necessary due diligence before diving in the dark. For starters, just try to find out when the company was incorporated. Its website does not mention it, the latest 10-Q does not either. [BANNER]
On a related subject, the same 10-Q is by no means a positive one, especially as far as net loss, current assets, liabilities and accumulated deficit are taken under consideration.
Yet, the rise continues. WNDM develops partnerships, has subsidiaries throughout which the company intends to penetrate markets on different continents, and one should not forget the stock rise that goes stronger every day.
The whole problem is that when a company’s stock movement is in contrast with the company’s development, this creates a higher level of uncertainty among investors. Whether they would overcome it, or a sharp decline would follow, is yet to be seen.
