Definitive Mattress Company f/k/a Crescent Hill Capital Corp (OTCMKTS:DRMC) Tanks in the Absence of Pumpers
The promotion for Definitive Mattress Company f/k/a Crescent Hill Capital Corp (OTCMKTS:DRMC) started at the beginning of last month and although it wasn’t the biggest campaign in Pennyland, things were looking rather promising at first.
Volumes slowly picked up and the ticker climbed out of the $0.20 per share levels that it had occupied for so long. On April 15, the biggest outfit to take part in the pump, Stock Publisher (who received $400 thousand for their efforts), joined the party and that’s when things really started heating up. In a matter of just three sessions, DRMC managed to climb from under $0.30 all the way to $0.50 while registering some heavy volumes. Some people who knew that the run is caused by nothing more than hype and excitement were probably able to get out on time and cash in on some tasty profits. Others weren’t so lucky.
The increased pressure and a negative Seeking Alpha article managed to incinerate 66% of the market cap between April 17 and April 21. DRMC then moved sideways for a while, but apparently, the people behind Darth Trader decided that they’re not happy with the performance. On April 28, they sent out an alert (this time, they disclosed no compensation) telling us that DRMC could come “back with a blaster“. They were wrong.
Several uneventful days followed and yesterday, the stock crashed once again. More than $1 million worth of shares changed hands in just six and a half hours while the price made some wild swings. DRMC closed the day at $0.10 per share which means that 80% of the market cap has been obliterated in just three weeks of trading.
And that is something of a shame since the company seems like a relatively solid venture when compared to other promoted penny stocks. Here’s a summary of DRMC‘s latest financials:
- cash: $6 thousand
- current assets: $12 thousand
- current liabilities: $216 thousand
- yearly revenues: $896 thousand
- yearly net loss: $57 thousand
The balance sheet is by no means perfect. If DRMC are to succeed, they will definitely need to raise some cash and they’ll need to do something about the debt, but the revenues and the relatively small net loss suggest that there’s a glimmer of hope. We can imagine that the people who relied on the figures above when they were making their investment decision were probably quite shocked when they saw their stock being squashed by the paid promotion. Indeed, a sad story, but is it really that surprising?
It isn’t. If you take a look through our very first article on DRMC, you’ll see that we tried to warn investors about the impending danger coming from the 21.5 million discounted shares that saw the light of day just a few weeks before the start of the promotion. The risks were plain to see and we’re quite sure that the people who took the time to do some due diligence were able to act accordingly.
While we’re on the subject of dangerous stock promotions, we should note that one such campaign seems to be coming to an extremely premature end. The $6.5 million pump for Pingify International Inc (OTCBB:PGFY) started on Friday, but after just two days of touting, it crashed hard and wiped out 41% of its value in a single session. Cannabusiness Group (OTCMKTS:CBGI)’s shareholders won’t need to worry about a similar drop happening to their shares… at least for the next two weeks. A few minutes before today’s opening bell, the SEC decided to suspend CBGI due to “questions regarding the accuracy of publicly available information about the company’s operations“.