March 11, 2016 analysis of VLDI by Hotstock. This says it all:
Bruce Benn, Validian Corp (OTCMKTS:VLDI, VLDI message board)'s CEO, said in an interview a few months ago, that over the last years, his company has been in “stealth mode”. He can say that again.
There are more illiquid OTC stocks out there, but it's fair to say that VLDI hasn't really been among investors' favorites. And there might just be a good reason for this. Ever since VLDI first popped up on the OTC Markets more than ten years ago, it's been talking about generating revenues and profits from its software applications. That goal has proven to be harder to achieve than what most people originally thought, though. The latest 10-Q proves the point rather well:
cash: $37 thousand
current assets: $204 thousand
current liabilities: $11 million
NO revenues since inception
quarterly net loss: $695 thousand
Trading volumes have been just as disappointing as the financial results, and whenever there is a spike, the stock tends to go down rather than up. Case in point: yesterday's session.
All of a sudden, VLDI woke up from its long hibernation and after just six and a half hours of trading, it managed to rack up a volume of nearly 7 million shares (about eight times the thirty-day average). Despite the increased interest, however, the ticker lost a quarter of its value and it closed the day with a price of a little over $0.02 per share.
Is anyone worried about the sudden and somewhat unexpected crash?
The holders of some of the convertible notes issued by VLDI over the years are probably feeling a bit nervous. The notes in question are convertible at a fixed price of $0.03 which means that if the stock fails to bounce, the holders could be facing some losses.
Retail investors, on the other hand, don't seem all that bothered. The crash wasn't caused by anything immediately obvious and the stock's supporters argue that fundamentally, nothing has changed. What's more, they reckon that the current levels actually present a rather good buying opportunity.
That might be good news for another group of people who aren't that worried about yesterday's drop. As we mentioned already, a portion of VLDI's debt can be turned into shares of common stock at a fixed price of $0.03, but there are some other notes that are convertible at a discount of 49% to the market price.
If the holders of these notes decide to convert and unleash their stock on the open market, they will still be able to bag a profit. Unfortunately, the same might not be true for regular investors.
