On Friday a paid pumper newsletter tried to breathe fresh air into the stock of Mobile Integrated Systems, Inc. (PINK:MIBI). The resuscitation effort seems to have failed, with MIBI down about 3% at the closing bell.[BANNER]
The failure to incite interest should come as no surprise. MIBI has been stumbling on through the new year with considerable effort. The company changed CEOs twice in 2012 in what appears to be a struggle for stability. The latest 10-Q filing quotes revenues of a mere $34 thousand since the company’s inception and states that generating earnings in the foreseeable future is not likely.
In an 8-K/A from June, the controlling shareholder of the company, an entity named 2238646 Ontario, Inc., granted options for the purchase of 22.6 million shares to people involved in the company’s board and management.
MIBI no longer needs to file a Form 4 for the sale of about 10 million of those shares since a conveniently timed 8-K from Friday stated that two members of the board who received such options resigned from their positions. Those shares have been optioned at a price of $0.15 and are now hovering in limbo, ready to be dropped on the market.
The pumper having a go on MIBI previously managed to get in the GWBU fiasco right on time for the ridiculous 61% plunge. Another example of what Penny Stocks SMS Publisher can do is EMWW. As you can see on the chart the result of the pump effort was nothing short of negligible.
The compensation of $50 thousand seems to be enough for the pumper to tout MIBI stock but traders should be extra careful when the company in question is being promoted but is still closing down on the first day of the pump and is trading in low volumes. The fact that a new 10-Q from MIBI is due but is still not available is also not much of an incentive for buying their stock.
It’s a mystery why MIBI still trades above the price given for the options to insiders, but it’s quite obvious the promotion went unnoticed by traders, or perhaps ignored after doing the due diligence. Sometimes mouth-to-mouth resuscitation simply doesn’t work out as intended.
