Zamage Digital Art Imaging, Inc. (PINK:ZMGD), run by Marc Pintar, finally succeeded in finding a way to get some gains. After trying and failing with a merger press release and a PR projecting millions of revenue, ZMGD announced a buyback.
The press release was issued about 15 minutes before the markets closed. In a matter of seconds, traders picked up the news and almost all of the 31.8 million shares for the session were traded in that 15 minute window. The result was an 80% increase and a close at $0.0018.[BANNER]
There is also a promotion. $15 thousand isn’t the most impressive compensation, but it may draw some more eyes on ZMGD’s buyback.
ZMGD states in the press release that they are buying back restricted shares from a majority shareholder. Supposedly, that buyback will result in the reduction of the OS by 2.2 billion shares, and the new OS will be about 450 million.
A buyback can be healthy, but one has to ask – where did the company get the money for that? The last time ZMGD chose to disclose some information in a financial report, it showed the company had no assets whatsoever.
Then again, the report was for the end of 2010, so who knows what is going on with its balance sheet right now. Shareholders certainly don’t. The company still has the stop sign at OTC markets.
According to FINRA’s daily regsho file, less than a third of the volume was short sales, so there are traders who believe the gain can continue today, or at least to hold. Of course, investors should do their due diligence before putting their money in any company.
