Engaged in trading and auctioning of transportation and industrial equipment worldwide, WWA Group (WWAG.OB) has recently started paying to College Stock $1,500 per month. This promotion increased the volume of the stock up to over 1 million, as well as drove the stock price to $0.74 which is 12% up. Although during the past year the trading used to be rather illiquid, the stock promotions do not seem to help solve this problem.
From the perspective of the financial situation of WWA Group, it can be stated that an improvement of company’s performance can be seen. Over the period of 2 years, the company’s assets doubled: from $22,801,000 in 2007 it jumped up to $40,277,000 last year. However, the operating income went down by 30% in the same period of time.
In addition, it should be noted that the company’s performance has been getting better in 2008. Although this is not seen very extensively, estimates might be made that earnings per share ratio is supposed to be rising in 2009. Unfortunately, the company has to put more effort and cover all the long term debt which was $343,000 as of December 2008.
All in all, the company has to strive for better future in order to improve its image. I don’t think that a stock promotion is the best way to do that.