Just the other day, Mr. Maclean, a causal part-time investor in pink sheets stocks, stumbled upon an event which would later change his life for ever. Serendipity had chosen this person to accidentally cast a look at the price chart of eDOORWAYS Corporation (PINK:EDWY) on Jan. 25. At that time, EDWY was hovering around $0.0005 per share, while the volume had already jumped up five times higher than the previous day.“What a nice chart and volume,” Mr. Maclean said. An overmastering desire to buy a part of this company conquered his senses and in the next moment he found himself buying 2 million shares of EDWY stock. Irrational as it might have been, this decision would sooner than expected award him with a windfall.
Two days later, on Jan. 27, EDWY stock delivered such a price and volume surge to the pink sheets observers that surpassed all expectations. Shares of EDWY spiked 40% to $0.0007. At the same time, the volume shot up to 71 million, setting an all-time record.
EDWY stock made this excellent performance because the same day the Ibero-American Science & Technology Education Consortium announced that it has attracted the International Federation of Engineering Education Societies (IFEES) to participate in the Leadership Channel that was created by EDWY. [BANNER]
The unexpected fortune that Mr. Maclean made overnight, however, seems to be just a mere chance. Based on EDWY’s financial data, it becomes apparent that the company could face severe difficulties preserving the value of its stock. To start with, the unofficiall reports indicate that from the end of 2009 to the end of 2010 the number of the outstanding shares has increased by almost 1 billion. In addition, the balance sheet reveals that the company has $10 million in debt, while its assets are only $1.4 million. Furthermore, EDWY has incurred a loss of $4 thousand for the quarter. The bleeding state of the company, however, hasn’t stopped its management to award itself nearly $500 thousand in annual salaries.
Even though EDWY has some gaps in its finances, the company is currently valued at $980 thousand, which at first sight is cheaper than the value of its assets. However, the bulk of these assets is comprised of the valuation of their software development, which is not an official estimation. All that being said, it appears it is very unlikely that the story about Mr. Maclean’s fortune will repeat itself.
