WebSafety, Inc. (OTC:WBSI) had an amazing session yesterday largely due to paid promotional newsletters advertising the stock.
Two promoters disclosed $20 thousand compensation each, and another one – $25. One of the third parties paying for the pump campaign was Stock Apeal LLC, and if there were others they weren’t named in the disclosure.
WBSI closed up 28.75% at $0.0515, and the volume surpassed a recent high from February, reaching 10.5 million shares.
Another potential catalyst for a market movement was the filing of WBSI’s 10-K with the SEC. However, the report didn’t show anything too inspiring.[BANNER]
In the last four and a half months the common stock has been diluted severely. The number of outstanding shares has increased to more than three times what it was at the end of 2011.
WBSI had insignificant revenue in 2011, no cash, total assets of about $55 thousand and more than $1.8 million total liabilities.
In addition to the promotions, the other thing which may have had a positive effect on the trade of WBSI stock was a press release from after the close on Friday. Back then, the company announced the WebSafety AT&T retail-point of sale program had expanded into 109 AT&T authorized dealers in Ohio.
Yesterday WBSI shares traded actively throughout the session although most of the volume was generated before noon. It will be interesting to see how the stock performs today without the support of promotions, unless some more get sent out.
