Pushing a boulder up a steep hill can be dangerous work. Paid pumpers however seem to be fearless in this Sisyphean task, especially when some of them are being compensated $500 thousand for it.
Yesterday a paid pumper was roaring praise for Marine Mobile Drive Corp (OTC:MDMC), a company that looks really eager to make it big in the online coupon business. Looking at how MDMC is doing, the prospects of success seem to be a world away.[BANNER]
Operating out of a location that looks less than reputable, the company has been slipping down in share price, effectively dropping more than 300% since pumpers left it alone in early June. The latest pump seems like one desperate attempt to raise stock price before current shareholders scuttle that ship. The company has issued no press releases since the most significant drop in the end of May 2012. With its steady downward movement one can only wonder what could possibly warrant yet another pump for MDMC.
The financial situation of the company is a dreary sight as well. According to its latest 10-Q filing, MDMC has generated zero revenue since its inception in Mar. 2007. On the other hand, the accumulated net loss from that date is $1.5 million. No 8-K reports have been filed in 2012 that may potentially incite some interest based on changes in the company’s situation.
Investors may want to be particularly careful on this one, considering who the highest paid promoter is too. Previous attempts by Preferred Penny Stocks have resulted in some of the ugliest pump jobs this year.
The promoter rode GWBU for the stretch of about a week and the results are easily seen on the chart. The next fiasco of a pump was CTDT (now moved into the Pink Limited Information tier by OTC Markets), where pumper compensations were sky-high again and after a short while company stock sank like a rock, again.
Both those disastrous failures were covered here and yet pumpers keep promoting companies that are teetering on the edge of a really tall cliff. As usual, the best advice would be to do your own due diligence and make sure you’re not in that boulder’s way when it comes roaring downhill.
