Dewmar International BMC, Inc. (OTCMKTS:DEWM) Soaring On Repetition

Dewmar International BMC, Inc. (OTCMKTS:DEWM) had an amazing jump last Wednesday, when the company finally broke its long silence. Naturally, a withdrawal followed the leap, but it was short-lived – Friday saw DEWM climb even higher up the charts.

In spite of the huge gap down start and the diminishing dollar volume, Friday’s closing bell caught DEWM 15% higher than its previous close.

Interestingly enough, it looks like this second jump was something of an aftershock of the first, and was more or less made possible by the company “re-posting” the open letter of Dr. Marco Moran, DEWM President & CEO.

Evidently, many investors got excited by the rampant optimism in the letter, even though it was recycled, and the results are clear enough.

Still, prudent investors know that due diligence is advisory before committing to an OTC Markets penny stock, even if its PR is good. This is where the trouble starts for DEWM. Why?

One look at the company’s OTC Markets profile yields the realization that DEWM has not filed even ONE financial report in more than a year. Even the fact that the last report it filed was horrifying, even by the low standards of the OTC Markets, more or less becomes irrelevant when one notices that the company is tagged as “OTC Pink No Information”, with a bright red “STOP” sign hanging over the disclaimer.

That’s the first and foremost warning that investors get.

One glance look at the company’s last report reveals the fact that “As of November 14, 2013 the registrant had 1,010,858,175 issued and outstanding shares of common stock”. Its OTC Markets profile totals its Shares Outstanding at 2.4 billion as of Sept. 30, 2014. Readers are advised to punch the numbers into a calculator first, just to see if they like the dilution percent that comes up, before jumping on the DEWM train.

What’s more frightening is the fact that this is just a minuscule fraction of the red flags that crop up if you start researching DEWM.