Your first reaction when you open a door and see a pitch black room on the other side would be to cringe a little, then maybe feel the floor with one foot. It sure is not to stroll right in, only to find that there are rusty nails strewn all over the floor.
Today pumpers are once again inviting you to take a plunge in the dark with promotions of Neologic Animation, Inc. (PINK:NANI). The ongoing promo campaign seems to be slumping down already, with NANI closing down 7% yesterday, but compared to the previous pumps for NANI, there is much room left for slipping further.[BANNER]
It looks like pumpers are determined to squeeze NANI until people who are stuck with shares completely unload them into the hands of eager investors.
The worst part is, NANI are tossing their stock around while traders are flying completely blind. The company, formerly Narnia Corp., completed a reverse merger in May with a Full East International Ltd. – an enterprise that generated no revenue over the last 8 months of 2011. Concurrently NANI changed its fiscal year end from April 30 to December 31.
However, the latest filed 10-K report is for the year ending April 30, 2011. The most recent state of financials reported is in a 10-Q from January 2012. This is virtually asking investors to play blindfolded frisbee and hope that the disc doesn’t hit them in the head.
It’s not that the figures in that 10-Q (filed under former name Narnia Corp.) are anywhere near exciting:
$298 in total assets
$76 thousand in liabilities
zero revenues
While pumpers think news of a Letter of Intent with a vague concept and forward-looking plans to develop a product is enough to tout NANI, investors may want to hold their horses, especially considering how the stock fared after previous pumps and the general performance of pumpers StockRockandRoll. The promoters managed to run aground KALO and LBGO in their previous failed efforts.
Traders should always do their due diligence and make sure they wear their hiking boots before they let an alluring voice lead them through the dark.
