Investors learned about The Wolf of Penny Stocks a couple of months ago through an advertisement on an internet forum. In fact, there have not been many new entrants to the penny stock promotional market which is why many people thought that the results of newsletters probably won’t be extremely dramatic. Wisdom Homes of America Inc (OTCMKTS:WOFA) demonstrated how wrong this idea was.
Both the tweets and the emails stated that that there has been no compensation for the promotional campaign and yet, it worked remarkably well. Wisdom Homes of America recorded a gap up opening and made an intraday high of $0.016 per share. However, it later declined and ended last week at $0.00750 with massive gains of 337%.
At $665,000, the dollar volume was more impressive than the gains. So, WOFA received attention of market participants, but it remains to be seen if it can continue with the rally in coming trading sessions. Yesterday, the stock declined more than 8% to close at $0.00640. The decline came at a share volume of 12.76 million compared to average share volume of 2.69 million.
Wisdom Homes of America profile tells that there had been few changes over the years which don’t appears to be a positive sign. It indicates that the previous businesses didn’t work out. With the recent business plan, the selling of manufactured homes, the company looks to be on to something. Due to dismal weather conditions, the sales in first quarter were down, but in 2Q the company managed to report $1.2 million in revenues. It should be noted that the company launched its first retail center last year in February.
As per the latest 10-Q, the company reported cash of $252,000, current assets of $2.6million, current liabilities of $3.7 million and net loss of $1 million.
Wisdom Homes of America Inc (OTCMKTS:WOFA) was able to break out from a strong downtrend on the back of heavy volumes which was a clear indication of the shift of momentum towards the buy side. On the back of the breakout, the stock was able to move above its 50 day moving average which is seen as a bullish sign. The relative strength index for the stock has given a buy signal which is pointing towards inherent strength. Traders on the street believe the stock would find massive support near the $0.0040 level in the near term and resistance at $0.0100 level.