Writ Media Group Inc. (WRIT)

[21ZNA9]

More news:

http://www.hotstocked.com/article/4139/half-a-million-makes-a-number-one-place-for.html


Long story short, this well-paid promotion managed to create such a trading frenzy that not only did the stock double in price to $0.08, but the trading volume exceeded 100 million - more than any other penny stock company. Yet, before you start day dreaming, it is perhaps wise to consider some other facts which somehow usually slip the promoter`s mind.

This is a company with no operations, $50 in cash, actually this amount represents the total current assets of the company. There are, however, $5.1 million of accumulated deficit, which is why you can read the following in the latest 10-Q statement: "These factors raise substantial doubt regarding the company`s ability to continue as a going concern; it is unlikely to generate earnings in the immediate or foreseeable future." Again, attention to detail is what matters!

By the way, if you are to invest $500k in a company, you would expect to get more in the near future, right? By the same token, when a third party puts $500k in a promotion, it is also natural that someone is expecting to get more than $500k in return. One question that should come to mind is - what is the most likely way to get a good return on that investment. What will probably happen when the promotion is over?