WKLI stock provided again the chance for a 24.62% day profit yesterday and closed at $0.81. Over 1 million shares were traded, 36% of that volume being reported as short sales. As it often happens, shorting and promoting seem to go hand by hand also in the case of WKLI stock.
During the last two weeks, three free of charge promotions were disclosed, two of which took place last Monday. In addition, some long expected PR news have been delivered as well. WikiLoan’s announced to have developed “WikiCash Card” branded phone cards, already packed with a retail distribution contract and a first purchase order. The optimistic PR projections are for $170,000 in revenues, to be booked in the forth quarter of this year.
More importantly, the CEO hopes to use that cards as a means of adverting the main business of the company: the virtual social network for borrowing and lending cash. Unfortunately, its financial dimensions so far cannot explain the trading dimensions of the stock this month. WikiLoan has insubstantial revenues and assets, but a substantial accumulated loss of $6 million and even more substantial doubt on its further existence. More precisely, the company’s total assets represent 0.0073% of the $44.39 million market cap as of yesterday.
It makes almost no sense to mention that the largest part of WikiLoan’s debt is in the form of notes, convertible into shares of common stock at a 0.75% – 0.80% discount on the 10 day average market price of the stock. The belief that the stock is good for a trade looks strong, and the possibility that the company may attract equity investments and dilute its shareholders in the near future may seem very unlikely to some traders.
