If 3 guys operating out of an inexpensive house with loads of debt and almost no money in the companies bank accounted miraculously landed 26 million dollars in contracts, this would be the happiest day of their lives.
An e-mail I received touting the stock in Ludwig Enterprises (PINK:LUDG) is suggesting that I believe this is true. Although it doesn’t seem the investing public is buying it. On the contrary it seems there is some serious dumping going on. As the stock got a pounding and is already down 38% today.
A few things to shed further doubt on the situation is that they never filed an 8-k with details of these so called contracts. Instead somebody went out and spent $155,000 pumping the stock through various e-mail campaigns. This money exceeds the value of the first payment of the contract. So it brings up the question what is the real business going on here? If you follow the money, this company seems to be in the business of pumping the stock, reverse splitting it and printing more.
They even pay their bills with stock certificates. A filing from early may shows that the company issued 2,000,000 shares to wipe out $20,000 in debt. They effectively gave that stock away for a penny. But the price for investors who buy into this e-mail campaign is more than 15x higher.
This isn’t the first time we have heard these hopes and dreams from Ludwig. About 2 years ago they were pumping their stock and we thought this was so ridiculous we put together a video to show investors how foolish we thought investing in the stock was. And guess what…. We were dead on the money. The stock tanked 99.99% from where we made the video.
Hotstocked’s video made before Ludwig destroyed 25 million dollars of investor money
The above chart shows what happened last time we said this stock was garbage. But they reverse split the stock, issued a bunch of new shares and are back to their old ways of pumping the stock. It seems they have a new headquarters a quick look on google maps from the address on their website shows this is where they are operating out of these days.
Ludwig Enterprises Corporate Headquarters from Google Maps
The pump e-mail touting the stock came from a group that we have been mailing us for a few months now. The first pick they sent me was a tout for IJJP stock (PINK:IJJP) and it got slammed down 87% in just 2 months. Not exactly a vote of confidence for the guy who is telling investors to buy Ludwig.
Although the low price tag of the shares may seem cheap ludwig’s market cap exceeds 20 million dollars. Which is a steep premium to pay for a company that has:
- Only $51 (not a typo) fifty one dollars in the bank
- Over $321,000 in Debt
- Has not reported one penny worth of sales
If three guys in a living room in Pompano Beach Florida really are building a great business good for them. But their method of investor relations, and the long string of eye popping losses seems to paint a picture that tells a different story. A story with a long history of pumping and dumping. A story that has already wiped out over 25 million in wealth for shareholders.
