A New Financial Statement and Some More Emails For DoMark International Inc (OTCMKTS:DOMK)
We last wrote about DoMark International Inc (OTCMKTS:DOMK) minutes before the start of the trading session on April 24 and after our article came out, they gained a respectable 32% in just eight hours. On April 25, they added a further 6% but, then the excitement waded and Friday’s and yesterday’s sessions were not that optimistic (exactly as we predicted). The total loss since the last green day is 18% and yes, it’s not the crash that tickers usually experience when they get pumped, but it’s still quite a substantial loss. And yet, having in mind the developments from today, DOMK might be in for some more trouble.
Despite the fact that the emails from April 23 and April 24 all but failed to give the stock a considerable rise, we have been receiving some new ones today and while during the last campaign there were only a few of them, this time the number of pumpers is substantially larger. SmallCapAllStars, WhyPennySt0cks, Penny Stock Beats as well as a few others are in on the bandwagon and they have been creating hype around DOMK in the last couple of days.
This time, there are no new press releases which is something of a surprise if we have to be honest, but we must give it to them – DOMK have been busy, nevertheless. They finally issued the long-awaited quarterly report for the three months that ended on February 28 and, we must admit, we were itching to open it and see if they have managed to achieve something during that period. Unfortunately, we weren’t impressed. Here are the most important financials:
- cash: $5,418
- current assets: $75 thousand
- current liabilities: $819 thousand
- quarterly revenue: $1,396
- quarterly net loss: $5.7 million
If anything, this new report looks worse than the previous ones and if they don’t do something about the whole situation soon, they could find themselves in quite a mess.
There is one positive thing that we learn from the statement – they have managed to resolve all the legal issues so far, but having in mind the amount of debt right now and the the fact that some of it will become due really soon, some more difficulties might be in store for them.
The fact that the wireless charger that they have been bragging about for so long won’t be available for sale any time soon is also a cause for concern and we can’t say that DOMK‘s press releases are the definition of “convincing”, either. At least not for us.
Take the one from April 16, for example. It states that DOMK have reached a memorandum of understanding for the purchase of 44% of a company called Zaktek Ltd. We did a quick search on Google and all we managed to find was a profile according to which Zaktek is a computer sales company. DOMK, however, beg to argue and say that they are about to acquire a part of a company developing a gizmo that is supposed to act as a docking station for your smartphone and with it, you will be able to use the device’s ten-inch display which will give you a more tablet-like experience. It’s called Phonepadplus and DOMK have even provided us with an official website.
Unfortunately, when you enter the website, and more specifically, the Contact form, you learn that “PhonePad is imported and distributed exclusively by High Fliers Films Plc”. The footer text, on the other hand, says that the rights are owned by Eicus Media Ltd.
It’s all extremely confusing, but there are two things that worry us most of all – the first is the fact that DOMK have not disclosed any details about the deal with Zaktek and we have absolutely no clue when (and if) it will be closed and the second one is that, just like DOMK‘s own wireless charger, the PhonePad is not quite ready for sale. Some research reveals that it will hit the shelves no sooner than July and it will be available only in the UK for the time being which will limit the market somewhat.
In the meantime, the pump goes on and having in mind DOMK‘s performance during the previous promotions in September and November 2012, we’re somewhat skeptical about their long-term performance. That’s why an extensive research and a lot of due diligence are absolutely crucial before making any quick decisions.
