Holiday Island Holdings Inc (OTCMKTS:HIHI) and Damn Good Penny Picks Fail Miserably

On Wednesday, Holiday Island Holdings Inc (OTCMKTS:HIHI) issued its first press release in a while and said that they are in the process of retiring a significant portion of its issued and outstanding stock. Some major shareholders have apparently agreed to part with a grand total of 280 million shares. 130 million of them have already been canceled and the rest should be returned to the treasury in the coming weeks.

The management team have said numerous times that reducing the O/S count will add immediate value to the shareholders, but unfortunately for them, not a whole lot of people reacted to the news. The stock did gain about 54% and it finished the day at $0.0017 per share, but it did it on a dollar volume of just $11 thousand which means that only a few investors were really interested.

Apparently, the people behind an entity called OTP Group decided that it can put HIHI in the spotlight with a paid pump. They called Stellar Media Group LLC, paid $20 thousand, and in exchange for their money, they received a promotional campaign on HIHI. Six emails were sent out by Damn Good Penny Picks and the rest of the Stellar-operated newsletters, and we’re pretty sure that many people were hoping to see the stock surge in the right direction. Unfortunately, their hopes fell on deaf ears.

The start was positive enough. HIHI opened yesterday’s session with a rather big gap up of $0.0024 and about an hour later, it hit an intraday high of $0.003 for the first time in over five months. Sadly, it then ran out of steam and it started sliding. The closing bell stopped it at $0.0017 – exactly the same as Wednesday’s value.

So, Damn Good Penny Picks failed rather miserably at pushing the ticker in the right direction, and the same can be said about HIHI‘s own announcement, but is this really that much of a surprise? The truth is, as optimistic as the press releases and emails sound, there isn’t an awful lot else to suggest that you have a solid investment opportunity on your hands.

The company switched its focus from providing business services to real estate at the end of 2013 and the people at the helm of HIHI said back then that they’ll do a lot of things. They wanted to acquire some properties and generate revenues from them. They also wanted to tidy up the share structure and turn the company into a fully reporting entity. All they managed to do in a little over a year, was change the company name and ticker symbol and come up with a website that’s not exactly informative.

The press releases are not entirely convincing, either. For one, the share reduction plan is not new. They’ve been talking about it for a while. And although they say that they are going to buy the shares from the shareholders, we’re not sure how exactly they’re going to do that. According to the Q1 report, on March 31, the company had:

• NO assets whatsoever
• current liabilities: $1.1 million
• NO revenue
• quarterly net loss: $2 thousand

Of course, Damn Good Penny Picks won’t be deterred by small details like dreadful financial statements and lack of any evidence that the company is working. After yesterday’s closing bell we received some emails and we won’t be too surprised if the alerts keep on coming.

The excessive hype might just give the ticker a push, but you really have to think hard and decide whether the risk is worth it.