Primco Management, Inc. (OTCBB:PMCM) Bombs By A Quarter
In our previous articles we warned that the recent movement up the stockchart of Primco Management, Inc. (OTCBB:PMCM) is rather hesitant and showing signs that the stock has reached unstable price ranges. Well, yesterday PMCM plummeted downwards right from the get-go and at the end of the trading session was sitting close to 25% lower at $0.004. Traded volume remained quite high with a little more than 900 million shares changing hands.
Early in the morning PMCM issued another press release but this time it failed to have any effect on the performance of the stock. It contained mainly fluff and informed investors that an analyst report for the company has been created. Well, the report has little more to offer than what has been said in the previous PRs by the company and a look through PMCM latest financials. Which as we have said in our previous articles are not exactly confidence-boosting:
• $115 thousand cash
• $3.1 million current assets
• $3.5 million current liabilities
• $29 thousand revenues
• $1.6 million net loss
• $3.1 million current assets
• $3.5 million current liabilities
• $29 thousand revenues
• $1.6 million net loss
Prior to the switch to the marijuana industry PMCM was a music producer that after spending more than $2 million managed to generate less than $30 thousand in revenues. In order to pursue any operations in the newly chosen industry PMCM voted to increase its authorized shares to the massive 15 billion. Although the CEO said that the increase is not likely to happen in the next 90 days due to the audit of the financials currently taking place investors should still be cautious.
Not to mention that we won’t be able to know how much revenues the acquisition of the marijuana collective Suzie Q will bring for quite a while as the deal should be finalized at the end of the month.
Sitting deep into the double zero price ranges makes PMCM extremely volatile. The stock rushes upwards on optimistic news but quickly loses positions if left on its own. Try to weigh in all the risks around the stock before committing to any trades involving pennystocks.
Yesterday Viking Minerals, Inc. (OTCMKTS:VKML) suffered another crash after the stock lost around 18% and dropped to $0.12. Propelled upwards by nothing but speculations about an upcoming switch to the marijuana industry VKML was able to surge from $0.0036 to a high of $0.162 in just two weeks. Keep in mind that if the optimistic support starts to dissipate so will the price and anyone still holding their shares could suffer tremendous losses.