In last trading session, the stock price of Valmie Resources Inc (OTCMKTS:VMRI) gained more than 21% to close the trading session at $2.40. The gains came at a share volume of 1.41 million compared to average share volume of 961,273.
Valmie Resources has been doing extremely well in the past one year gaining altitude, and trying to keep most of its gains. The trading volumes have recently surged and that has brought immense pressure on the stock price. In fact, VMRI stock lately suffered from a drastic decline that obliterated a significant portion of the company’s total market value. However, VMRI stock refused to plunge below the share price of $1. Meanwhile, its market capitalization of over $100 million do not works well with the company’s latest financial accomplishments and the crossbones and skull mark that it shows in the OTC platform.
The financial performance
In the last released quarterly report, Valmie Resources reported cash of $24,000. The total assets came in at $58,000 and total liabilities amounted to $268,000. Valmie reported revenues of $0 and net loss of $83,000. The financial numbers are quite terrible and fails to support thehuge market capitalization that the company boasts. These facts have not stopped the stock from moving on north, regaining a big part of the value that it eroded last month.
The future ahead
The poor fundamentals and the massive market capitalization, however, might sooner or later bring an end to this recent rally of Valmie stock. Therefore, investors be sure to perform due diligence and assess the risks before investing any funds on the line. In addition to the poor financial performance, there is a big mess revolving around the firm’s stock-related troubles. In the last two years, Valmie Resources has issued almost 6 million shares of its common stock against funding.