Harbor Island Development Corp (OTC:HIDC) – A New Player In The Game of Pumps
Harbor Island Development Corp. (OTC:HIDC) just recently caught our sight but yesterday it blew up big time to close at $0.0462 or an increase of more than 200%. Investors were also quite eager to jump right in trading more then 190 million shares in a single market session.
HIDC has recently been undergoing massive changes and trying to attract attention to itself. Taking a closer look though, numerous red flags can be noticed.
Firstly On April 3, 2013, Mr. Chuck Anton was appointed as the company’s sole Director and President, and Chief Executive Officer, and Chief Financial Officer, and Treasurer, and Secretary. Not only that but Mr. Anton now holds a 66.67% beneficial ownership of the company with 300 million restricted common stock in his control.
Secondly, on the very next day HIDC entered into a License Agreement with BrandSeed Inc., under which they received the rights to utilize a certain proprietary direct marketing software for 5 years. For this they paid with another 110 million restricted shares. Try as we might, we couldn’t find any information about BrandSeed Inc. so in the end we think they filed a wrong name and in reality meant BrandSeed Group LLC. – another company with Mr. Anton as CEO.
Finally, as we suspected in our previous coverage, HIDC was immediately targeted by paid pumpers. Select Penny Stocks and Penny Stock Heroes are expecting to receive no short than half a million dollars for their efforts. In the alert emails they recited Mr. Anton’s past achievements and awards but conveniently forgot to mention one very important fact – back in 2002 the Federal Trade Commission issued a complaint against TechnoBrands Inc and him personally for false advertising. Furthermore, a judgement of $4,300,000 was entered against TechnoBrands.
HIDC‘s financial stability is not so great, either. Their latest 10-Q report contains the following:
- $8,123 cash
- $223,248 total liabilities
- $12,348 quarterly net loss
- Zero revenues
Admittedly their debt isn’t that high for a penny stock company but that means nothing if a steady flow of income different than the issuance of more shares isn’t secured.If by any chance the name Penny Stock Heroes didn’t rang any bells for you, let us refresh your memory. Back in December they took part in one of the biggest fiascoes of 2012 – the promotion of Pub Crawl Holdings Inc. (OTC:PBCW). Looking at the chart one wouldn’t believe that they once again bagged $500 000.
Although HIDC may be new and exciting company for investors, everything surrounding it has had some past history. Before attempting any dealings do your own due diligence just to be on the safe side.
