MMax Media, Inc. (OTC:MMAX) Explodes on Heavy Pumping

6MMAX_chart.gifYesterday a large volley of pumps sent MMax Media, Inc. (OTC:MMAX) through the roof shortly after the open, then the stock proceed to fall throughout the day, still managing to close 500% up at $0.036 per share.

At least 13 email promoters sent their subscribers touts for MMAX stock yesterday. The emails were filled with enough hype that seems to have grabbed grab investor attention enough to have the virtually dead stock shift 1250 times its average volume in a single day.

MMAX is a company that, as the pumps state, has trademarked the term “social income”, a fact that pumpers believe is enough to call MMAX a “valuable business”. Traders could get a bit of an idea of how valuable MMAX‘s business is from their last quarterly financial report dated September 2012:

  • ZERO current assets
  • $26 thousand revenue for Jan-Sep 2012
  • $1.2 million net loss for Jan-Sep 2012

Considering the company has been talking about monetizing social networks since 2011 and the domain of its paymeon dot com website, included in most of yesterday’s pump emails, has been registered as early as 2010, the report doesn’t make it look like a lot of ‘monetization’ has been taking place.

Traders who looked at MMAX filings may have also noticed that in December the company issued a convertible note for the sum of $165,500, with a conversion rate of $0.005, or half a cent per share. The note seems to have already been exercised, as a Form 3 filing details that the note recipient, Celentano Consulting Company, LLC, received their 33.1 million shares, along with an additional 5 million shared under a previous note. Then yesterday the pump happened.

Considering the lack of previous considerable trading activity, traders should be able to figure out on their own what is very likely happening and who can profit wildly from offloading shares obtained at an incredible discount from the price spike in the hands of eager new buyers receiving the pump emails.

4MMAX_logo.jpgMMAX is headed by Mr. Edward E. Cespedes, CEO and sole board member, who is not new to the world of Internet-oriented stocks. He was vice president for theglobe.com – a company that was to pioneer the social media movement, which also happens to crop up in various lists of the worst IPO failures of all time, with stock price dropping from a spike to $97 per share to 10 cents within a time window of about two years. theglobe dot com can currently be found as TGLO, trading at $0.0021 per share.

At the end of the day, MMAX moved predictably like most pump jobs do, spiking and crashing in a single day. Even the current price is over 500% up from the conversion rate of the notes so there is plenty of free space below MMAX‘s current perch.

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