A mid-day alert on World Surveillance Group Inc (OTC:WSGI) pushed WSGI stock up 16% by the end of yesterday’s trading session. The advertising campaign, which was worth $8 thousand, came hard on the heels of another ‘future’ press release.
Closing at $0.0675 per share, WSGI gained 16% in value. Moreover, it managed to do so in spite of the huge volume of 1.35 million, the highest since late-August.
As it seems, what triggered the one-time promotional campaign is the latest company press release which popped up yesterday. According to the update, WSGI had now scheduled a test flight of its proprietary Argus One unmanned aerial vehicle due to take place in early December on a Nevadan test site which is generally used by the U.S. Department of Energy. The company also presented the U.S Department of Defense as the main sponsor of the event.
While this step appears to resonate with stockholder expectations, many of them see it as one that is long overdue and criticize the company for not acting as fast as it could. Nevertheless, a successful demonstration in a few week’s time would certainly allow WSGI to move forward at an accelerated pace.
To do so, however, WSGI’s managers will have to attract substantial amount of additional capital because if they have to rely on their own resources, they would hardly achieve anything. As seen in the company’s latest 10-Q form, its balance sheet a/o Sep. 30, 2011 contained:
- cash reserves of $48K;
- working capital deficit in excess of $16.6 million;
- quarterly net loss of $228K.
