VSHC closed again at $0.0062 for a share and the shocking trading volume of over 2.97 million shares was not sufficient to change the attitude towards Visual Healthcare stock, especially considering the facts behind. The stock looks risky even for a momentum play, unless more promoters get in. Yesterday, one promoter has been compensated $2,500 for one-day coverage of VSHC, which took place yesterday and has thus already expired. The money was paid by a person named Robert Jameson.
In the first e-mail that was sent early in the morning, the promoter mentions to have heard rumors that “BIG NEWS” is on the way. As by a fluke, the “news” came up at noon and yet despite the second wave of buyers the share price did not move up. The announcement said that Visual Healthcare Corp. has been working on some web based software platforms that could enable physicians follow patients suffering from chronic conditions at lower costs. If that was actually news to some investors, it is no wonder that VSHC was not among the most popular trading picks until it got included in some other promotional e-mails earlier this month.
VSHC fundamental side does not look as bright as its press releases. The company is reporting only to the OTC markets. As of end December 2010, Visual Healthcare had $9,450 in cash and over $2.1 million in accounts payable, short-term loans and other current liabilities. The net loss only for that last reported quarter was $3.44 million.
The company began working on its medical software in 2000 and has not finished the development yet. In addition, so far VHSC has already reached the limit of its authorized number of common shares, which is 550 million. If the company it again to raise equity, it will have to either issue preferred stock, or change its articles of incorporation.
