Are Investors Returning To EMS Find Inc (OTCMKTS:EMSF)?
The stock of EMS Find Inc (OTCMKTS:EMSF) has been surging up the chart for two sessions now. Yesterday it added another 11.6% to its value closing at $1.44 per share. Unlike the previous session, however, this time the trading was far more intense with the daily volume reaching 126 thousand shares. The monthly average for EMSF stands at 16,524 shares.
The gains have been impressive but investors should be extremely careful – there is absolutely nothing supporting EMSF‘s jump up the chart. In fact, it could even be said that there are quite a lot of reasons for the stock to be actually sliding downwards. The latest PR is now nearly 2 months old while in its latest 8-K form the company revealed that it has decided not to proceed with the acquisition of the Page Out, an emergency response system interactive platform. EMSF signed a letter of intent to acquire Page Out back in June.
The financial state of the company should further push investors away. According to the annual report for the fiscal year ended March 31 EMSF had:
• $168 cash
• $7148 total current assets
• $18,278 total liabilities
• $264 thousand gross sales
• $43,380 net income
Subsequently EMS Find decided to change their fiscal year to a fiscal year ending June 30. In the 8-K form covering the change the company stated that the annual report for the new fiscal year should be completed within the next four weeks. Well, not only were they unable to do so within the stated time frame but today they submitted a notification of late filing.
So, what could possibly explain the last two sessions? How about the fact that investors have once again began receiving hard mailer brochures touting EMSF? Back in June a widespread pump campaign was launched and it involved the creation of a landing page, that is active even now, and the distribution of hard mailers created by the Moskowitz Report. In our articles from back then we warned you that there are 18 million shares, bought by a group of investors at a split-adjusted price of $0.002, that could be dumped on the open market. If these people still own even a portion of that amount EMSF could indeed be in for a second round of pumps.
In June the artificial hype pushed the stock to a high of over $2.4 but the gains were obliterated equally as fast. Playing pumped stocks is always dangerous. If you are determined to do so make sure to take all of the risks into account and to set appropriate time horizons for your trades.
