Novus Acq & Dev Corp (OTCMKTS:NDEV) On The Rise Again
Back in May there was a rather big paid promotion for Novus Acq & Dev Corp (OTCMKTS:NDEV). Leading the pack were Stock Mister who were expecting a compensation of around $350 thousand and they distributed some of it around smaller promoters in order to make the campaign bigger. The people who received the emails probably opened NDEV‘s filings, got amazed by the rare sight of a net income, saw the report done by Murphy Analytics (who were compensated $2,500 from NDEV, themselves), thought that the pumpers might be right for a change and jumped in.
As it often happens however, the pumpers turned out to be wrong and in a matter of just six trading sessions, NDEV lost around 63% leaving virtually no opportunities for profits even for the traders who decided that they just want to play the pump and make some easy money.
Yesterday, there was another wave of promotions, but surprisingly, the effect on the ticker was a bit different and NDEV did make a decent run gaining as much as 25%. The total estimated budget is $128 thousand and the biggest compensation was received Premier Stock Alerts – $35 thousand. Will NDEV be able to show a more sustainable performance, though?
Well, there are a lot of factors that raise some doubts. At yesterday’s close of $0.125 per share, NDEV‘s market cap turns out to be over $20 million and for that sort of money you get a company that has:
- cash: $2,640
- current assets: $2,890
- current liabilities: $180 thousand
- quarterly revenue: $20 thousand
- quarterly net income: $2 thousand
As you can see there is, indeed, a net income, but $2,640 of it won’t be enough to turn them into a market leader. What’s more disturbing, the revenues for the first quarter of 2013 amount to less than thirty percent of the ones that they registered during Q4 of 2012. All in all, NDEV‘s management team still have a lot of work to do.
Speaking of the people who run NDEV at the moment, they have some high expectations for their latest acquisition – Baroma Healthcare International LLC. As we can read in the quarterly report, Baroma Healthcare is actually a subsidiary of another publicly traded venture – Baroma, Inc. f/k/a Plantation Development Corp. (OTCMKTS:BRMA) and NDEV‘s stake there amounts to 4 million shares. A quick research on BRMA reveals that until recently the current CEO of NDEV, Mr. Garry “Frank” Labrozzi was also at the helm of BRMA which means that the connection with Baroma Healthcare isn’t really that big of a surprise.
Mr. Labrozzi’s experience with publicly traded companies, however is not limited to BRMA. He was also once the CEO of a venture called Brandmakers, Inc. (BKMS), a company that seems to be inactive at the moment, and while he was there, the SEC had some complaints about him and the way he managed his business venture.
And while we’re still on the subject of Mr. Labrozzi, you should also probably keep in mind that he was once involved with a company called Tequesta Capital Corp – a private firm. According to most of the business descriptions available on the internet, Tequesta are an electronic publisher of information about some publicly traded companies. That tickled our curiosity somewhat, so we continued digging until we stumbled upon this email. In it, you can see that Tequesta actual business is paid stock promotions. We even managed to find a post in a forum according to which investors were receiving SPAM emails from Tequesta and Mr. Labrozzi, himself.
Will all these facts make NDEV crumble like it did last time? No one can say that for sure as of yet, but one thing is certain – a thorough research and a lot of due diligence is definitely advisable before putting your money on this particular ticker.