Georgi Kamburov


by Georgi Kamburov August 13, 2015

On Tuesday the stock of VOIP-PAL.COM INC (OTCMKTS:VPLM, VPLM message board) suddenly shot upwards and by the end of the session managed to add nearly 35% to its value. The traded volume for the day of close to 2.5 million was equally as impressive if you take into account the fact that the monthly average for the stock sits at less than 300 thousand traded shares.

Yesterday the stock continued with its strong performance opening the session with a gap up at $0.115. When the closing bell rang VPLM had moved another 18% up to $0.124, just below the high of the day of $0.125. The surge displayed by the ticker is indeed remarkable but there is one rather serious problem – there is nothing supporting it.

The last PR published by VPLM is over three weeks old while the latest filing is the quarterly report for the period ending June 30. And if you think that may be the quarterly is the reason for the resurgence of the stock, well, think again because the report contained some rather depressing numbers:

• $25,525 cash and total current assets
• $60,732 total liabilities
• ZERO revenues
• $242 thousand net loss

At the same time after the recent jump in share price VPLM currently command a ludicrous market cap of more than $123 million.

The only thing that has kept investors at least somewhat positive is the patent portfolio of the company that according to the financial report is valued at $11.4 million. Keep in mind, however, that “No independent valuation of the carrying value of the company’s intellectual and goodwill costs has been performed”.

The dilution of the common stock is another serious red flag. During the nine months ending June 30 a total of 7,235,000 shares were issued at $0.05 each. The outstanding shares of the company have surpassed 994 million and are getting rather close to the authorized amount of 1.04 billion. The situation could be improved if the company gets a favorable ruling in their legal suit against Locksmith Financial Corp., TK Investment, Richard G. Kipping, and Terry Kwan. VPLM seeks to cancel and return to treasury around 103 million shares that were allegedly issued illegally “through a series of deceptive debt conversions, stock issuances, and non-cash accounting transactions.”

Even if you believe in the potential of VPLM to monetize its patents either through a patent infringement lawsuits or as the CEO has stated by outright selling the company you should still approach the stock with caution. Do extensive due diligence before committing to any trades. 

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