Harbor Island Development Corp. (OTC:HIDC) Pump Rolls On
On Friday the $500 thousand stock pump targeting Harbor Island Development Corp. (OTC:HIDC) quietly chugged along, with two emails sent in the morning, near the market’s opening bell. Despite the emails HIDC slipped another 13% to a close of $0.034 at the bell.
The pump campaign is now being run single-handedly by offshore promoters Victory Mark Corp. against the supposed $500 thousand they received as compensation. The promotion is already slumping, logging its first double-digit red close, volume sliced in half once again, at 20 million shares traded.
Traders may have finally woken up to the numerous warning sirens blaring about HIDC. We have covered the stock before and noted some of the more disturbing details. Chief among those, except obviously the huge pump, is that the company’s S-1 registration statement contains the name of law firm Carrillo Huettel LLP as legal counsel. For everyone who doesn’t follow stock pumps closely, the name may not ring any bells. Penny hunters may remember Carrillo Huettel as the law firm that closed its U.S. offices in late November 2012 and reportedly fled the country, or as the firm that the SEC pressed charges against in March 2013, for participation ‘in an international “pump-and-dump” scheme’.
HIDC had under $10 thousand in cash and zero revenues since inception recorded in its last financial report. Even if we leave this fact aside, there are the subsequent 8-K filings, explaining how HIDC‘s new CEO purchased the rights to a piece of software from a company he ‘owns and operates’ by issuing 110 million HIDC shares.
In addition to all this, there’s of course the track record of Victory Mark (VM). The Belize-based pumpers may sport the worst performance-to-compensation ratio. The disclaimers of VM’s outfits, Select Penny Stocks and Penny Stock Heroes, always contain disclosure of $500 thousand in compensation. The stocks they pumped however, turned into some of the worst overnight crashes of the past six months. Those include Pub Crawl Holdings, Inc. (OTC:PBCW) and VuMee Inc. (OTC:VUME), followed by Red Giant Entertainment, Inc. (PINK:REDG).
Traders are advised to be very careful with promoted stocks, especially when the past performance of the promoter is as dismal as Victory Mark’s and when there are additional red-flag factors about the companies in question.
