In the last trading session DGIN jumped 8.33% up and closed the market at $0.195. The trading volume was 80,250 shares and it was a couple of times higher than the average. Today a newly started promotional campaign will try to make the illiquid stock explode out of its narrow trading range.
The new promotion began yesterday afternoon and it is expected to hit the market today. 18 promotional e-mails for DGIN have been sent after market close. Promoters received $30,000 for the advertising service from a third party. The group of promoters that will build market awareness for DGIN today is usually getting a compensation of $29,000 and is generating on average a dollar volume of about $312,000. That could imply a surge for DGIN share price at market open today, but traders should have the usual warning in mind when buying a pink sheets company that is not reporting to the SEC.
The company is engaged in the development and delivery of interest rate, currency and insurance related products and services. Lastly, DGIN announced at the end of February that it is in preliminary discussions with the industry’s largest bank to offer the “the first complete premium financing, risk-management solution potentially endorsed by this bank”.
Diversity Group International financial condition, however, is not that of a promising company that could offer premium financing solutions. At the end of the three-month period ended September 2010 DGIN had $217 in cash and total assets of $15,300, the largest part of which consisting of property and equipment. As opposed to that, the company has liabilities exceeding $1 million, all of which current. DGIN reported also a net loss of $1.55 million for the quarter.
