WRIT Media Group Inc (OTCMKTS:WRIT) Looks Primed For Another Pump

WRIT Media Group Inc (OTCMKTS:WRIT) was covered several times by us. Have a look at the most recent pieces if you have not gone through them before:

• July 7, 2016, WRIT Media Group Inc. (WRIT) looking for bagholders
• June 30, 2016, continuing to climb is WRIT Media Group Inc. (WRIT)
• June 21, 2016 WRIT Media Group Inc. (WRIT) hits the OTC

Are you the kind of investors who buy while promoting companies’ pump stocks, and try to sell right at the highest point? If yes, then you will love this story. If you are too busy to read this entire article, let us recap the following:

"WRIT is just the latest promo from the Elite Penny Stock Group. For those that are not familiar with Elite, they are the most powerful newsletter group on the OTC markets." "After all, when you look at the fact that the “conversion price is 55% multiplied by the lowest value weighted average price for the Common Stock during the 5 trading day period ending on the latest complete trading day prior to the conversion date”, it’s no wonder shares are dropping. When someone owns shares as cheap as these toxic financiers, any bid is a good bid." Source

The company was promoted in June 2016. The share price went from trading at $0.25 to touch the $1.50 level in one month period. The convertible debt holders made a lot of money moving the market.SourceWhy are we talking again about the stock? Because it seems that everything has commenced again in the same way as last year. There is an equity research firm telling that the share price should be $1.5 again.SourceAdditionally, WRIT has become quite popular on Investor Hub.Recent DevelopmentsOn May 22, 2017, it was disclosed that WRIT had been assessed by Discovery Research, and this equity research firm had given the company a target price of $1.50 per share. Investors could find the full report here. The share price at the moment is close to $0.20, thus we wanted to review its analysis to understand the reasons that justify this valuation. The main reasons for this valuation seem to be an expected increase in the amount of users, and the success of digital currencies:

"With WRIT, the upside potential to downside risk may be as much as 15 to 1 in the next 18 months and it appears that the probability of success becomes greater simply by the increase in the number of users which is already occurring without much marketing spend. This drafting of the increases in other digital currencies is a nice positive that could put wind in the sails of the stock." " That specific timeframe was chosen to conservatively allow the company some leeway in achieving more users, validation of its Blockchain technology with a major partner, and launching its currency exchange." Source

In our opinion, the reasons may be right, but the price obtained seems to be an exaggeration. But, we invite readers to make their own research and draw their own conclusion about the company.Short sellersAnother very good indication is that the amount of short sellers went almost to zero in November 2016. Exactly close to the highest pick in July 29, 2016; the amount of shares short was 33,436 shares. At that time, the share price was close to $1.5, so short sellers commenced to increase their stake. A few months later, they bought back the shares generating substantial returns.DateShort Interest% ChangeAvg. Daily Share VolumeDays to CoverSplitNew IssueFeb 28, 2017193100.0046,9351.00NoNoNov 30, 20160-100.0017,7760.00NoNoNov 15, 201610,193599.118,9061.14NoNoOct 31, 20161,458100.0031,1071.00NoNoSept 30, 20160-100.0044,6980.00NoNoSept 15, 2016937-70.8585,2231.00NoNoAug 31, 20163,214-62.0339,8911.00NoNoAug 15, 20168,464-74.6953,0261.00NoNoJul 29, 201633,436275.52638,9351.00NoNoJul 15, 20168,904-68.47241,3981.00NoNoSourceIs the pump commencing again?It is difficult to say if the stock promoters will start again pushing up the stock price to the level seen in the last year. The company issued only one press release, wherein an equity research firm stated that the share price should be close to $1.5. However, we did not see more communications to sustain an increase in the share price.ConclusionWe assessed the company's share price action and we discovered, like other market participants (check this comment in iHub), that the stock had been a P&D work of the Elite Penny Stock Group in 2016. As of May 23, 2017, we have now started to see the same techniques and evidence that we saw last year. We cannot be sure that there is another campaign going on right now. Some equity research firm said that the price should be $1.5, but the company did not release any press release to justify such a share price. Thus, we encourage market participants to be careful on this name. To sum up, one can trade the shares on the back of a pump, but don't stick around for the long run. We will be updating our subscribers as soon as we know more. For the latest updates on WRIT, sign up below!Disclosure: We have no position in WRIT and have not been compensated for this article.