Hot Stock Profits Keep The Hype Alive For Double Crown Res (PINK:DDCC)
Today’s stock in focus has been subject to paid advertising for at least two weeks already. Nevertheless, it has proven remarkably resistant to the huge pressure that usually accompanies each pump job. The stock in question is that of Double Crown Resources Inc. (PINK:DDCC). Is its promotional bubble about to burst, though?
The promotion in favour of DDCC commenced on March 18 with a couple of emails drawn up by WFWS Consulting Inc. via their subsidiaries Whisper From WallStreet and OTC Stock Exchange against a modest compensation of $5,000 paid by Level Up Industries /LUI/. As a result, the stock gained 19% on day one. The baton then passed to Moving Pennies, Prime Time Stocks and The OTC Professor, all run by Primary Investments LLC. Ironically enough, their reward of $4,000 was provided again by Level Up Industries. The newest addition on the bandwagon is the Hot Stock Profits /HSP/ Team who have received $3,000 from a 3rd party that has remained undisclosed.
As you can see, the current pump job on DDCC involves a wide variety of players and a massive wave of promotional emails that just keep bombing investors’ mailboxes showing no signs of slowing down. Apparently, a lot is lying at stake right now and the people behind the whole game have a lot to lose.
Considering that the campaigns’ initiators will hardly reveal their names, pointing them out is a fairly challenging task, so we won’t bother. What you should by all means do, however, is a thorough due dilligence on the company if you are interested in getting a stake. We studied DDCC‘s filings and were amazed to learn that there have been a few grand insider transactions lately. As it is, a total of three company officials happen to have acquired an aggregate of 11 million shares of common DDCC stock between April 2013 and March 2013.
While there is nothing wrong with owning a stake in a successful business, the situation seems quite different when the company in question is in dire straits in terms of financial stability. This is exactly the case with DDCC. The latter has maintained a working capital deficit in excess of $1 million on a quarterly basis for quite a while now. Needless to say, the $3,000 of cash are by no means sufficient enough to pay off even a tiny fraction of DDCC‘s short-term debt. The total lack of revenue, on the other hand, is indicative of a failed business model and utter incapability of financing any business ventures. Last but not least, the lack of cash flow quickly makes the salaries well run dry.
In this respect, DDCC stakeholders could only benefit from a potential surge in the stock’s market value regardless of the methods used. The company does not exactly seem well-positioned for fundamental growth, hence the paid promotion which is still running.
