More Trouble For Prince Mexico SA Inc (OTCMKTS:LUVE)

4LUVE_chart.pngThere has been a lot of touting for Prince Mexico SA Inc (OTCMKTS:LUVE) lately. Even though the amount of pump emails reached a total of around 70 the effect on the stock was rather shocking as it slid 70% in just 2 days, even after the emails kept coming in our inboxes.

After the terrible start of the June 19 trade session and the apologies that followed from the pumpers who touted the stock it looks like the price of LUVE‘s stock crashed through the floor as it couldn’t go any lower. Just minutes into the trading their stock started to go down like a free-diver with a last wish. After that the apologetic emails from pumpers started coming in with titles like “Wow…Terrible” and “I come hat in hand…”

Yesterday didn’t make much of a difference also, apart from the drop being lowered from the 60% that LUVE‘s stock took like a bullet to the head, registering 25% down the slope. Looking at the charts and graphs for the past month it starts to look like the insiders that paid for the promotional campaign thought that they could dump as much stock as they can after a pump of such magnitute, but they were wrong.

It all started on Sunday, June 16 when the first emails started coming in. The very next day after the massive amount of thrilled investors that received the promotional emails started to show themselves the volumes increased from the normal range for the company of only 500 to 40 thousand traded shares to a whopping 1.6 million in just one day. The peak of trading was reached on June 19 when LUVE‘s stock traded in over 6 million shares and their stock generated a total trade value of $1.1 million.

LOGO1.pngLUVE has 43 million shares outstanding and a $4.5 million market cap, but what do they really have to back that up. They seem to not be that eager to make a filing with the SEC (they haven’t filed a report for Q1 this year and Q2 is nearly over, a thing for which they were marked as an OTC Pink Limited Information company) we only have the financial data from their annual report, which covers the period ended December 31, 2012. For those of you who didn’t follow our coverage closely we are listing the numbers of prime interest below, just so you can get a better view of the financial climate in the company.

 

  • cash: $8 thousand
  • total assets: $202 thousand
  • current liabilities: $769 thousand
  • revenue: $228 thousand
  • net loss $138 thousand

 

9ACCS_chart.pngFor now the company’s financials seem to be doing O.K. (having in mind that they are traded in the OTC Markets) even with the lack of cash on hand. At least they seem to be making good revenues with what they got and the only thing that pulls them down is the fact that they can’t manage to make a profit from that revenue. Be sure to do your due diligence before making a decision to invest in LUVE.

Yet another company that we keep an eye, whose stock continues its downfall tremendously is African Copper Corp (OTCBB:ACCS) who went down 75% yesterday and are now nesting at $0.03. The other big “winner” from yesterday Were Lot78 Inc (OTCMKTS:LOTED) who plummeted 42.5% yesterday and are now traded at $0.4715.

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