Shortly after news and Justin Bieber recommendation had brought the stock of Options Media Group Holdings, Inc. (PINK:OPMG) to a new yearly high, some “dirt” about the company came out and made the share price climb down. Friday session was no exception, but at least the number of sellers seem to decrease for now. 5OPMG.png

OPMG closed on Friday at $0.0325, losing another 4.41% from Thursday close and trading over 16 million shares. On Tuesday traders must have come across a publication about the creator of the company’s new PhoneGuard technology, who is according to the author of the article also OPMG’s new President. The same day OPMG share price had just marked a new 52-week high, and started falling down shortly after Yahoo Finance linked to the article.

OPMG stock multiplied its market value after the company signed a marketing agreement with singer Justin Bieber and as of yesterday the stock trades at a P/S ratio of 15 and a P/B ratio of almost 12, way too high multiples for the industry and suggesting that OPMG might keep falling. On the other hand, the company’s sales for the first three months of the year have more than doubled as compared to Q1 of 2010, although they came mostly from the old lead generation business and not from OPMG new mobile software applications.Options_media_Group.jpg

This month, Options Media Group Holdings new management has also improved OPMG cash position, by investing directly into the company. According the latest 8-k, the CEO, the Chairman and the President of OPMG (whose name is Russell Strunk according to the filing) have invested a total of $250,000 through purchasing 11,100 shares from the just designated by the Board Series G preferred stock. Further, the 8-k says that OPMG has so far received more subscriptions for the new preferred stock for a total of $1.1 million.

According to the latest 10-Q of the company, the Series G preferred stock consists of 21,000 shares which are automatically convertible into 10,000 common shares each upon an increase in the company’s authorized capital stock. The Board has also approved the sale of these preferred shares at a price of $100 per share. Since they are potentially convertible into 210 million shares of common stock, the value of each share of common stock would be $0.01.