I’d love your thoughts on Next Galaxy Corp.
Used to be Wiless Controls, hovering around $0.02 a share. In past couple of months, morphed into Next Galaxy (there is a decent amount of press behind that transaction). Entering the Virtual Reality software space with supposed applications to the Oculus Rift headset (Recently purchased by FaceBook for a ton of money).
Stock now up in the Twenty cent range, thinly traded, but the press seems legit.
Is this a slow burn pump and dump or is there something of substance here?
For some strange unknown reason, I spent a grand and bought 50k shares of Wiless Controls when it was $0.02, and then ”Next Galaxy” happened. Do I thank my lucky stars and get out for a potential 10x gain, or do I hold on and become a gazillionaire because Next Galaxy / Virtual Reality / Occulus Rift is the next big thing? HA!
My first post as an irregular, so I’m excited to hear some insight from all of you kicka$$ multi-talented investors and fraud fighters!
Exmarlin21
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I’ve never heard of them before and there’s not a lot of promo material out on them that I see, so it’s probably not a big, active external pump and dump that’s being heavily promoted — but that doesn’t mean it’s not a promotional “wing and a prayer” or a company that insiders might be trying to pump up. It’s always good to be cautious about microcap penny stocks that suddenly change their business model to match a trend — penny stocks were becoming gold miners without mines back in the mid-2000s, then turning themselves into social media companies a year or tow later, then becoming 3D printing companies not long after that. I don’t know if that cynical opportunism is the case with these folks, but it’s a warning sign.
If I were in your situation, my impulse would probably be to sell and take the profit. Or, if I had some connection to the company or some reason to think they really had a differentiated product or a good position, keep a negligible number of shares but book profits on most. Their 10-K, just filed this week, indicates they have to raise $2 million right quick to get them through the coming year — don’t know if they’ve already done so, but looks like it’s a $14 million company with no real employees (officers are consultants, everyone else is apparently an independent contractor) or assets other than whatever that patent portfolio is that they say they bought in June, and presumably if they do have to sell stock it could be at perhaps half the current price or less, it would be shocking if that didn’t drive the stock down — particularly since they have only been in this particular business focus for three months and must be a long way from getting anything done.
That’s just my feeling from scanning a few pages of the 10-K — you can see it here, always read the actual filings if you want to have the clearest picture of what’s going on and, usually, what the risks are.
And the going concern stuff often helps think clearly about a company –this is from the 10-K too:
They don’t have anywhere near $25,000, according to that same filing, though something may have happened since then. And I have no idea what the competition is in this space, but here’s what the 10-K says:
Yeah, and all of that 10-k verbiage I believe applies to when their business was actually Wiless controls, working in the machine to machine “internet of things” space….
I’m leaning heavily towards selling a majority of my shares, booking a nice profit and let a little bit of house money ride on the …potential…
Appreciate the advice, Travis. My big wide eyes are back down to normal, just couldn’t believe the 10x pop and was getting lost in fantasy land. thanks for reminding me of 3 important things. Do your Due diligence, don’t be greedy, and taking a profit is never a bad thing….
Has anyone contacted any of the officers of this company. Googling Mary Spio returns a lot of info. If this is real and they get funding this might turn out to be a winner. Any ideas as to how to find out what’s going on for real.