Until a couple of days ago, Viral Genetics, Inc. (PINK:VRAL) was one of the few penny stocks that had never been subject to paid advertising. Not anymore. The first couple of promotions in support of VRAL stock reached our database last weekend.
Altogether, unknown third parties have invested a total of $18,500 to pump VRAL stock in the forthcoming session. Last Monday, VRAL got off to a flying start by going up 29%, followed by an even bigger surge of 48%, which resulted in a 4-month peak of $0.0245. VRAL then lost 10% on Wednesday before it rallied 4% on the next day. In the end, VRAL closed the week going down 4.37% to $0.0219 per share, which is still way higher than what VRAL achieved for the last couple of months.
Based on VRAL’s current market performance, as well as on past promotional campaigns in support of other penny stocks, one of the promoters now expects a two-fold increase in the value of VRAL shares. Investors who also support this idea, however, will have to take into consideration that:
- the last time VRAL nearly doubled its value was more than two years ago;
- there have been no significant news about VRAL’s recent activities.
In terms of financials, the company has already delayed its Q3 results. What is clear, however, is that as of Jun. 30 the company had:
- cash reserves of $7,643;
- working capital deficit of approx. $3 million;
- zero revenue and a quarterly net loss of $1.3 million, i.e almost twice as high as the loss incurred in Q2 of 2010.
Whatever VRAL managers intend to do in 2012, it will hardly convert the company into a profit-generating corporation, at least not overnight.
