Another Wave of Pump Emails for Delaine Corporation (OTCMKTS:DEPN)

This Sunday we began we once again began receive email touts for the stock of Delaine Corporation (OTCMKTS:DEPN). This time they were sent by Damn Good Penny Picks and their various affiliates for a disclosed compensation of $15 thousand. Despite this being the third attempt to pump the company since mid-October investors are paying attention.

In fact, during yesterday’s trading DEPN saw unprecedented number of its shares being exchanged – the daily volume reached 7.2 million shares while last Friday it stood at 224 thousand. The sheer amount of shares might have been impressive but the performance of the stock was certainly not. DEPN opened with a gap up at $0.056 and the artificial hype pushed them to a high of $0.064 in the first minutes after the opening bell. After that though the stock began sliding down and closed at $0.057 for a gain of 14%.

Around the time of the closing bell the pumpers Bull Trends, Penny Stock Crew, Stock Freak and Stock Publisher decided to join the promotion and another wave of emails was sent flying. All of them disclosed the sum of $12 thousand as compensation. We will see if this time the pumpers will manage to prevent a severe correction of the stock price – the previous two times DEPN crashed back down immediately after being pumped.

With so much money and effort being spent of hyping-up the company to a higher price range you must ask yourself the question who benefits the most from the increased awareness? And indeed if you take a look at some of the past filing of the company you will find that millions of shares have been issued at highly discounted prices. In January 2013 13 million shares were issued at $0.005 each. If you go further back you will see that another 6.1 million shares got sold for proceeds of just $10 300. This means that each share was priced at $0.00167.

The paid pump, the large amount of extremely cheap shares and the fact that on its own the ticker quite often sees days with absolutely no trades turn the company into a risky choice for investment. 

In early trading today DEPN is already crashing hard currently sitting over 24% in the red at $0.043.