If you are interested in what is going on around Marketing Worldwide Corp (PINK:MWWC), you can’t have missed yesterday’s trading session.
7.9 million shares is hardly among the biggest volume figures on the penny stock market. Yet, this number proved large enough for MWWC stock to score a three-year maximum, which will undoubtedly impact its 30-day average volume currently staying at 107 thousand. Not surprisingly, such a big spike in volume could not have left the price of MWWC shares untouched. Closing at $0.012 per share, MWWC stock lost 11% in value, cooling investors’ enthusiasm generated after Friday’s price surge of a staggering 32%.
In an attempt to give MWWC stock another push, a newsletter campaign flooded traders’ emails shortly before the end of yesterday’s session. Since no concrete compensation amount was disclosed, it is still not clear whether the advertising campaign is a paid one or not. Yet, the lack of specific numbers is likely to weigh the odds in favour of a free trade alert program, and you all know how the market usually reacts to such initiatives.
Along with the aforementioned newsletter wave, MWWC supporters saw a brand-new corporate press release pop up at the beginning of the week. As it says, Marketing Worldwide Corp was now about to commence production of a couple of interior parts for GM’s “Chevrolet Sonic” due for release this fall. As claimed by CEO Chuck Pinkerton, the company’s Chevrolet Sonic commitment would last three years and the production amount would be fairly dependent upon the model’s performance on the automotive market.
When it comes to financials, MWWC is a regular SEC filer. Its latest report was submitted last month and covers the quarter ended Jun. 30, 2011. As seen in the 10-Q form, the company’s balance sheet includes:
- $111K in cash;
- working capital deficit to the amount of $3.6 million;
- $450 thousand in revenue as compared to $1.05 million accumulated in Q2 of 2010;
- net loss of $539K vs. net income of $696K accumulated throughout the second quarter of 2010.
Considering that MWWC has been generating consistent revenue, its managers could strike it lucky if GM’s new Chevrolet model takes the American car market by storm. Otherwise, the company will have no other choice but search for other commercial ideas to fill its working capital gap.
