Can Compliance Systems Corp (OTCMKTS:COPI) Really Make It?
If you follow our articles closely, you will probably remember Compliance Systems Corp (OTCMKTS:COPI). We wrote about them in the past and if you read through our articles you will see that a couple of months ago COPI had a few major issues. Has anything changed, though?
One of the biggest problems was the financial situation and in this respect, almost nothing has changed. They did finally get around to publishing their annual report for the fiscal 2012 but the figures in it look pretty similar to the ones we saw in the quarterly statement for the period before September 2012. Here’s a quick summary of the most recent information:
- cash: $726
- current assets: $105 thousand
- current liabilities: $1.3 million
- no revenue since inception
- yearly net loss: $247 thousand
What about promotional effort? It’s pretty much the same old story there, as well. The first awareness campaign for COPI that we managed to intercept is dated January 27 and it was paid for by Summit Trading – an entity that owned quite a lot of COPI shares. We predicted that this was a bad sign and sure enough, after the ticker gained quite a lot of pennies, it was pushed down by heavy trading volume. About a month ago, in April, there was another campaign. It wasn’t as big as the first one and while we didn’t see a failure, quite as spectacular the one from January, the whole effort can’t be classified as a roaring success, either.
Now there is a new one and the mailing activity is again quite intense – during the last 24 hours we have received a total of 24 emails from promoters of all shapes and sizes and the total budget is estimated to be $55 thousand. Will it succeed though? We’ll leave that question open a second and turn back to COPI and the changes that they have undergone during the last months.
If you have one more look at the previous articles on COPI, you will see that the biggest issue that we had with them was the lack of operations. The newsletters that took part in the previous pump campaigns all talked about COPI getting a share of the global online betting market which, as we all know is huge, but when we were covering them we saw that their SeanieMac.com website was not quite ready.
Right now, however, it is. The announcement came out last Monday and we can imagine that COPI‘s officers were expecting that the trading will be absolutely massive once the website goes online, but that, unfortunately was not the case and Monday was the only day when COPI actually managed to get over their three-month average trading volume. The price, on the other hand was moving up and down and with no considerable changes. Most likely that is why someone called the pumpers and asked them to spread the word around a bit.
Will people trust them, though? Well, when you have in mind that COPI have already been promoted with some terrible results, we’re not sure if the pump will succeed this time. We’re also not sure that the investors should be too keen on jumping in when you have in mind that the pumpers’ track records are absolutely full of failed picks. Take Monster Trading Alerts, for example. They have been around for a couple of years and you’d probably think that they have learned by now, but you’d be wrong. At the beginning of the month they got paid to advertise Great Rock Dev Corp (OTCMKTS:GROC) but as you can see from the chart on the right GROC didn’t really live up to the expectations. Right now, unfortunately, there’s nothing to stop COPI from following in their footsteps.
In fact, until COPI come up with the financial statement in which we will be able to see the results of the first few months of SeanieMac’s operations, any predictions related to the movement of the price will be based purely on guesswork. That’s why it’s important to weigh your risks carefully before investing in COPI. Especially considering the ongoing promotional campaign.
