Wikifamilies, Inc. (PINK:WFAM)
landed on the massive traded yesterday. Suddenly, the stock broke up the continuous
downtrend and gained 4.58%, on a traded volume of 1.5 million shares.
The reasons for the gain are crystal clear - positive news, accompanied by promotions. The news has been released during the past couple of days.
The first announcement reported that the website Wikifamilies.com has been successfully launched on March 30, and the second one stated that all of the website users could already share any type of file from their Wikifamilies.com account on their Facebook wall.
The news sounds good enough to influence WFAM stock price, though there is another factor that may pump it up even more. Namely, promotions.
WFAM has been promoted since yesterday and today the compensation for the campaign totaled $35,000 so far. Does it mean that the up move will continue?
Historical records show that promotional strategy is well-known to Wikifamilies. In fact, the stock has been regularly promoted over the past several months, though the effect of the promotions usually lasted for a day.
On March, 30 WFAM filed a notification of late filling related to its annual report, thus the company's financial condition remains unknown. However, if it's similar to the 10-Q report of Wikifamilies, the situation won't be bright at all:
WFAM finished the third calendar quarter of 2011 with:
* $15,534 in cash
* working capital surplus in excess of $400 thousand
* $2,550 in revenue and a net loss of $294,107, both incurred since inception on Feb. 15, 2011.