This, however, doesn’t seem to worry VPLM investors. Last session the stock price moved 28% up and closed at $0.032 with a new volume high for the year. There seem to be two reasons for the great performance yesterday, a paid promotion and some press releases from the company.[BANNER]
The announcements concern recent developments in the company’s attempt to get a piece of the potentially huge market. As admirable and inspiring as such a goal is, there are some facts that investors should consider. For starters, the mobile VoIP market is not really untapped. In reality it is a fast-paced and fiercely competitive field with some brand names, which already have stable positions.
Another thing, which could present to be a problem for VPLM, is the financial situation of the company as shown by its annual report:
- Current assets: $2 cash and $12.8 thousand inventory
- Current liabilities: $286 thousand
- Revenue: $5.2 thousand
This doesn’t mean the company has no theoretical chance of turning profits. If VPLM manages to come up with something revolutionary new to the industry, the potential profits for shareholders would be astronomical.
In the end, investors should decide for themselves whether VPLM are trying to get in too late or not, and evaluate what they think the chances of VPLM’s products and services are to successfully compete with the current market leaders.
