Yesterday, after My Social Income Inc. (PINK:MSOA) announced the result of the last financial quarter, its stock surged up 33% to $0.008. The trading activity was also much higher than the average with a generated volume of 53 million shares.
Officially, MSOA announced the year-end result with a net profit of $58 thousand. However, the financial reports which the company had filed with the OTC market are both unofficial and unaudited.
It seems that MSOA had forgotten to include in the press release that despite the year end profit, the last quarter ended March 31, 2011 was crowned with a net loss of $17 thousand. But this not the only red flag.[BANNER]
For example, the quarterly report reveals long-term debt of over $1.1 million, which compared to the size of the shareholder’s equity makes MSOA a highly leveraged company. In addition, the bulk of the company’s assets are represented by inventories and the cash amount is only $1.4 thousand. MSOA is also not generating cash through its operating 
activities, but issuing notes payable.
Based on the current chart configuration, it is very likely that MSOA had gone through some kind of a stock split, which is not yet officially announced on the OTC markets. So, investors had better wait for an official explanation of the sharp change in the stock value before venturing into the stock trade.
On the whole, the unconvincing financial state of the company and the sharp change in the stock chart would aggravate the investment process in the company, which is already too risky given the limited information status of MSOA.
