Over the course of this month, there have been a number of stocks that have managed to clock considerable gains and one of those is Marketing Worldwide Corporation (OTC: MWWC). The stock had traded flat on Tuesday but it should be noted that over the course of the month so far it has managed to clock gains of a staggering 700% and the trading volumes have also been at a breakout level.
In light of such massive gains, it may be a good idea for investors to consider keeping track of the stock and have a better idea about some of the recent developments which may have had an effect on it.
As it happens, the company was in fact in the news yesterday after it made a major new announcement. Marketing Worldwide Corporation announced yesterday that it had approved the cancellation of its reverse stock split and had decided to look for alternative options with regard to raising capital for its operations.
The company announced that its Board of Directors had reached the consensus after having been advised regarding the same by Robert Blagman, its TCO. In this context, Blagman noted that there were plenty of options for the company with regard to raising capital meant for capitalizing its operations.
The alternatives that Marketing Worldwide Corporation would be seeking are such that would not dilute its stock and that may come as a source of considerable optimism for the shareholders as well as potential investors. Stock dilution erodes the value of stock and hence, the announcement was a significant one from the company.
It was also announced that over the course of the next few weeks, as many as 470 million shares of its restricted stock would be sent back to the treasury. It will help in reducing the number of outstanding shares.