Little or no interest, $500k for the big bang to come and back to reality - this is the story of Writers` Group Film Corp.(PINK:WRIT
, WRIT message board
). From $400 per share in January to $0.04 in March - imagine what the chart looks like. Third parties stepped in with $500k for promoters
, but unlike actual sales and revenues, promotions cannot be the catalyst of sustainable growth, let alone stability.
The truth about most promotion contracts is that even when a third party pays for promotions for one year, the real impact on the market happens in the first few days after the newsletters arrive in people`s mailboxes. There is a possibility that this scenario would apply for Writers` Group as well. After achieving the number one spot for the most traded company on the stock market this Monday, there is a noticeable cool down as trading volumes are more than halved after each trading session.
There are, however, real positive facts which suggest that WRIT might indeed excel. More often than not, it is the management of the company that makes for its success or failure and WRIT has taken steps to make sure the right people are in place. An experienced an successful chief creative officer who used to direct videos for famous pop and rock stars, a former management individual who was behind the success of mp3.com - both figures that might turn the company around for a better future.
The above, however, have a hard path to go. The financial situation with this company is far from optimistic, up until recently there was hardly any interest in its stock and the past operations are no inspiration for potential investors either. It is yet to see whether a reverse is possible, or sub-penny levels are to follow soon.