On Sept. 22 the stock price of Degama Software Solutions, Inc. (PINK:DGMA) sprang up by 133.33%. Meanwhile, over 379.83 million shares were traded for the day, which is way over its average volume.
The fuss about this company must have been initiated when on Sept. 22 the news spread out that DGMA.pk had attracted the interest of several Brazilian companies to its IP capabilities and application. This information might be the cause of yesterday’s price surge, however, it should be pointed out that to identify “a potential use for Degama software services” is not the same as a factual deal. Thus the excitement about DGMA stock has actually no solid base so far.
A trader over at iHub started calling this company a SCAM shortly after the press release. Stating that Degama intentionally misspelled a famous company in their press release to confuse novice investors. The post goes on to say that CEO should be in Jail.
The stock was promoted earlier in the month by OTC Picks, and Stock Egg. OTCPicks mentioned in their newsletter that they did not receive compensation. While StockEgg’s disclosure was unclear on whether or not they received compensation for pumping Degama. The e-mail we read referred us to a disclaimer page on StockEgg’s website which did not exist, and gave us a 404 error.
The company’s financial situation has been shrouded in mystery since 2004, when its last financial report was filed. Investing in companies that do not publish financial information adds additional risks and pitfalls to the already risky game of investing. The SEC publishes a website at Investor.gov warning investors of the high risks of fraud in such types of stocks.
Domain records show that their corporate site has only been online for about 2 months. Interestingly, the domain is registered to the CEO with an address that appears to be an apartment. Below is an image from Google Maps showing where the domain is. Which is not the same address that is on Degama’s corporate site. Their other website VascoNow consists only of a coming soon page.
Degama Software Solutions DGMA
Investors are going to need to evaluate the likelihood of the Letter of Intentions materializing into real profits for shareholders. And it would be helpful if the company cleared up the confusion they have created with their misspelled famous company.
