The Stock Psycho Promote Parks! America, Inc. (OTCMKTS:PRKA) For Free
You probably know already that Parks! America, Inc. (OTCMKTS:PRKA) finished yesterday’s session 80% up compared to the previous close and you’re most likely thinking that this is a good thing. Problem is, it really depends on the point of view.
If, say, you bought some PRKA shares on Tuesday and for some reason you decided to sell them yesterday, you have almost certainly ended up with a profit. If you have fallen for the emails that The Stock Psycho and Darth Trader sent out minutes after the start of yesterday’s session, however, things are probably different. If you have a look at the intraday chart, you will see that shortly after trading began, the ticker shot up like a rocket reaching as much as $0.20 per share which is an astonishing run. It really is a shame that it was so short lived. By 10AM the slide had already started and the closing bell rang when the price stood at just $0.045 per share, which is indeed quite a bit higher compared to the previous value, but it still made the morning traders lose a huge chunk of money. Looking at the volume, we can see that most of the shares changed hands precisely during the first minutes of the session.
That really is a shame because if you do a bit of research, you will see that PRKA seems to be a solid company with steady operations and they are determined to work in the best interest of the shareholders. A look through their financial statements even confirms that they’re getting somewhere. Here are the most important figures as of March 31:
- cash: $159 thousand
- current assets: $348 thousand
- current liabilities: $808 thousand
- quarterly revenue: $547 thousand
- quarterly net loss: $143 thousand
You would agree that this is a far cry from the horrific financial states we see from many penny stocks but when you have a look at the annual report for 2012, there is even a net income. The decrease in revenues for the first quarter of 2013 is duly explained as a result of the bad weather during the winter and, in all fairness, PRKA can’t really control that. They are, however, working hard on minimizing the expenses and they say that they might acquire new parks only if they are 100% sure that it will bring in even more profits.
So, all in all, the company looks relatively good… apart from some doubts around the people managing it. In the quarterly report, we read that they have initiated a court case against a former CEO called, Larry Eastland. The reasons for the proceedings is breach of contract and fiduciary duty. For some reason, however, the management team decided to leave his son, Christopher Eastland, on the Board of Directors. Still, we do understand that this might not be the case of “like father, like son”.
Larry Eastland, however, isn’t the only CEO of PRKA that has been named in a court case. The person who is currently at the helm of the company, Mr. Dale Van Voorhis was apparently a defendant in a case from a while back when he was alleged of fraud while he along with some other individuals were performing a buyout of a publicly traded company called Funtime, Inc.
Of course, all these things might not have that much of an influence to the performance of PRKA, especially since we’ve already seen that the company seems to be moving somewhere. As you can see, however, PRKA‘s progress doesn’t change the fact that quite a lot of people were left with broken promises and relatively cheap shares yesterday.
Once again, we can’t say that we’re shocked. The whole thing was done by the pump that The Stock Psycho and Darth Trader initiated. Sure, the disclaimers say that there was no compensation, but that doesn’t necessarily mean that the outcome of the promotion will be any different. Take a look at the performance of GeneLink Inc. (OTCMKTS:GNLK) – another company that registered millions in revenue, and you will see exactly what we mean. The Stock Psycho’s pump on them was also done for free and it took place on April 26.