Over the last two sessions the price of CMG Holdings, Inc. (PINK:CMGO) stock has gone up more than 100%, and it seems it’s largely due to a pump effort.
After the 25% gain on Tuesday, yesterday CMGO added another 66.67% and closed at $0.0125. The volume also surged well above the average for CMGO, which is approximately 2.9 million. On Tuesday 4.8 million shares changed hands, and yesterday the number reached 7.8 million.[BANNER]
The company hasn’t issued any news other than announcing that Direct Global Media (DGM) initiated coverage on CMGO.
The website of DGM doesn’t mention any payment on part of CMGO, nor do the newsletters which tout the stock; in fact, both the newsletters and DGM say they have not been compensated.
There are no recent filings to fuel a surge. The most recent one is from May 14, but its a notification of late filing for CMGO’s 10-Q, which, if anything, would have a negative effect on the price.
The point that DGM and the newsletters are making is that shareholders of CMGO will get a “huge AudioEye dividend” at the end of May. This is encouraging, but it is no news.
Another thing mentioned in the newsletters is that CMGO already has revenues in the millions. Indeed, the annual report for 2011 shows approximately $7.2 million in revenues. However, it also features a $6.7 million operating loss, as well as a $7.7 million net loss for the year.
The AudioEye spin-off has a lot of potential, but there are a lot of uncertainties around how well it may do. Traders and potential investors should, as always, do their due diligence.
