

The story at first sight – no news, exploding volumes, breaking price limits on the market. This is Thwapr this week. Only $0.2 per share last Friday, it trades above $1.2 today. Quite a kick for which a powerful catalyst is needed, especially since the very little interest on the market for this stock before the promotion came out.
The promotion that brought all the hype. Which compares Thwapr to the early Google and Youtube, all this in big colourful letters, but also mentions something about $150k paid for the promotion, the latter mentioned in very tiny letters. Which, in terms, is a solid amount of cash to put in a single promotion. There is a third party that really wants this stock to jump high. The question that remains is – would this be a lasting situation or just a short burst?
Several factors have to be considered. Financials, on one hand, include some quite pessimistic numbers like $1000 in cash as of Sep. 30,2010 and $15.9 million of accumulated deficit for the same period, together with a net loss of $12 million just for 2010. [BANNER]
For the above numbers to change, there should be revenues, meaning Thwapr should offer paid applications for the different mobile phones. In this aspect, it is the next quarterly statement that would prove the real direction of the company and its stock.
Even if Thwapr does not become the next Google, if the idea behind the company is monetized, there would be more runs like the one on the market this week.
If, on the other hand, promotions continue to be the fueling power behind the trading sessions, the company future would remain uncertain and open to speculations over forums and blogs.