The Pump for DNA Dynamics, Inc. (OTCMKTS:DNAD) Reaches Its Inevitable Conclusion
Yesterday was another disaster for DNA Dynamics, Inc. (OTCMKTS:DNAD). For a second session in a row they bombed by more than 40% to close at $0.0019 on a massive selling volume of 24 million shares. The current price level means that the ticker has lost more than 80% of its value since the start of the pump on May 13.
During the height of the promotion PennyStockLocks, StockRockAndRoll and StockLockAndLoad, affiliates of MJ Capital, disclosed receiving compensation of $15 000. But now since they have moved on to find other targets a score of lesser newsletters came to fill their spot. For the past two days PennyStockGeneral, SmallCapAllStars and Why Penny St0cks have been touting DNAD for sums ranging from $2000 to $3000. In the end all of their efforts were for naught as nvestors decided not to take the bait and bailed on the stock.
In order to see why the promotion failed we decided to take a look at DNAD‘s fundamentals. They are a game developer for smartphones, tablet devices and other platforms. Since the start of the year they switched their business from the creation of original properties to work for hire with third party publishers. Their latest financial report is a quarterly for the period ending March 31 and it didn’t paint a positive picture:
- $7000 cash
- $25 thousand current assets
- $230 thousand net liabilities
- $40 thousand revenue
- $780 thousand net loss
Although they are earning some revenues they are drastically outweighed by the accumulated loss of $3 million. Even more concerning is the stock side of their operations. On January 24 the authorized amount of common shares was increased to 9 billion followed just 7 days later by a 500:1 reverse split. All of this was in preparation for February 4 when 8 BILLION shares were issued to the directors of the company bringing the total outstanding number to 8.6 billion. The only saving grace is that the shares are restricted but the report doesn’t say till when.
Back in April StockLockAndLoad were part of the promotion of Suspect Detection Systems, Inc. (OTCMKTS:SDSS). Under the pressure the ticker plunged downwards and was almost entirely forgotten with no active trading for some time. Just recently it managed to climb up a bit and show signs of life.
DNAD have a lot of red flags surrounding them. Some pumpers may continue churning out alert emails promising a bottom bounce but seeing the underlying financials of the company we leave the decision whether that is possible up to you.