Mergers can often make sub-penny Pink Tier companies get some explosive gains. Will that be the case with Zamage Digital Art Imaging, Inc. (PINK:ZMGD)?
The announcement was made yesterday, minutes before the close. It did manage to give ZMGD an 8.33% boost to $0.0026. 310 thousand shares were traded. Interestingly enough, 210 thousand were traded in the morning.
In addition to the PR, a promotional campaign started after the close. The promoter discloses they expect to be compensated $30 thousand for their services.
Traders should be careful with ZMGD. While a merger can be a good catalyst for a breakout, there are certain details about ZMGD that should be kept in mind.[BANNER]
The person listed as ZMGD’s Presiden, Secretary, and Treasurer is Marc Pintar. For those who have been keeping an eye on Mina Mar Group companies, the name may be familiar. If not, they should definitely take a look at EEGI, SKGO, GMDP, and PTSH. If they do, they might see a disturbing pattern.
Additionally, this won’t be the first merger for ZMGD. In May 2010 the company merged with EverdowCRM, a Chinese-based software company. The result at the end of 2010 – no revenue and no assets whatsoever.
None of this means ZMGD will not make a run. It simply means traders should be very careful how they play this one, if they want to make some money on it.
