Hokutou Holdings International, Inc. (PINK:HKTU) Gets a $65,000 Round of Pumps

This weekend a new round of pump mails was set in motion, targeting Hokutou Holdings International, Inc. (PINK:HKTU). The pumps are run by a circle of promoters in the employ of Tribeca Investments, Ltd. and they all disclosed a compensation of $65,000 for touting HKTU stock.

The first wave of pumps for HKTU was launched on the last day of January, and despite the modest compensations handed out, the stock managed to generate heavier volume on Friday and close almost one cent up. The weekend pumps are running on a much larger budget of $65 thousand and are much more likely to have a more tangible effect on the stock price.

Taking a closer look at HKTU can be a hair-raising experience for the more excitable. The company changed names five times, the last change taking place in 2008. Since then, the company’s summary financial reports available on their OTCMarkets page consist of a single quarterly dated September 2012 that contains the following numbers:

• total assets of $550 in cash
• $29 thousand in liabilities
• zero revenues
• $4 thousand net loss in administrative expenses

Anyone reading the pump email who is not already terrified by those figures may want to check out HKTU‘s products available on their brand new website, advertised in the pump. Sadly, as of the time of writing, the website is not accessible and doesn’t even return a structured 404 page. Visitors are greeted only by a blank window and some plain text that reads “OUT OF SERVICE”.

Basically, promoters bagged $65 thousand to advertise a company that has no material assets except $550 in cash, claims to produce nutraceuticals, and incurred zero operational costs over the last reported quarter – hardly the mark of a functioning business. Then again, promoters are paid to advertise a stock, not check their facts before they make a claim.

Additionally, HKTU‘s public float should be a little over 11 thousand shares, as per the same report. Yet, over the previous two sessions, over 500 thousand shares changed hands.

Promoters Awesome Stocks, one of the pumpers touting HKTU, previously ran arguably worse pump jobs. One example is their late January effort to tout Zippy Bags, Inc. (OTC:ZPPB). The pump had virtually zero effect on stock price and crashed within a day, despite the $60 thousand the promoter pocketed.

Traders are advised to be extra careful with penny stocks, more so when they are promoted. This is especially true with companies such as HKTU that have numerous red flags about them. Do your own research and stay safe!