Investors Were Not Impressed With UOMO Media Inc. (PINK:UOMO)
What’s the score from yesterday’s pump on UOMO Media Inc. (PINK:UOMO)? Well, one thing is for sure – the promoters were well prepared when they started the touting. Our database has intercepted around 20 emails and so far, we have we have estimated that more than $60 thousand were shed on the artificial hype. While it might not be the biggest pump we have ever seen, it was certainly quite an effort. Unfortunately for the people who have initiated it, the results were not as impressive. Although the trading was a lot more active than usual, the ticker managed to close the session at just $0.21. In other words, just 5% up compared to the previous close with potential intraday profits of no more than 10%.
You would agree that this is not a whole lot considering the fact that so much money was spent on the awareness campaign, which means that once the trading session was over, the newsletter sprang back to life and the emails started flying around once again. This time they were putting the emphasis on a new press release that hit the websites just minutes after the close of yesterday’s trading session. It says that UOMO has renewed their contract with Universal Music Canada, Inc. It’s fair to say that if you have ever been interested in music, you have probably heard the name Universal Music before and the fact that UOMO is going to work with their Canadian branch in the months to come will probably spark the interest of quite a lot of investors which means that we’re expecting today’s trading session to be quite a lot more interesting compared to what happened yesterday. Unfortunately, the volatility of penny stocks as a whole and the fact that someone (the people who paid for the pump) is probably waiting for the right time to make a profit makes it extremely hard to predict where exactly the ticker will go from here – up or down. Even if UOMO do gain some more significant ground today, though, we still have our doubts as to their long-term success.
For one, as far as we can work out from yesterday’s PR, the contract with Universal Music Canada was extended, which means that the collaboration has been active all along. And what did the partnership with a subsidiary of one of the leaders in digital publishing resulted in for UOMO? Not a whole lot.
As we mentioned yesterday, the last quarter of 2012 was pretty disappointing with less than $2 thousand generated as revenues and a $77 thousand net loss. And an even bigger cause for concern is the fact that the previous years’ financials looked a lot better. Unfortunately, the financial statement doesn’t disclose what the reason for the drop in the revenues is, which leads us to believe that UOMO‘s CFO and majority shareholder, Ms. Jueane Thiessen, has been in quite a hurry when she was compiling the report.
Maybe she was too busy gathering the information for the second company that she works for – Portlogic Systems Inc. (PINK:PGSY). We had a quick rummage around our database to see if we will find past promotions for PGSY and it didn’t take us long to find that they have indeed been in the paid pumpers’ sights. There was one campaign back December 2012 and another one in January and the chart on the right shows how disastrously they both ended.
In our previous article we also mentioned the possible connection between Ms. Thiessen and Punchline Resources Ltd (OTC:PUNL)’s former CEO, Mr. Michael Thiessen. If you click here, you will able to find a graphical representation of the proximity between the offices of PUNL, PGSY and UOMO. The fact that PGSY are headquartered quite close to UOMO is somewhat understandable, however, the situation of PUNL‘s HQ on the same street as UOMO leads us to believe the same surname is not just a matter of coincidence. And in case you’re wondering, despite the fact that they gained 47% on Tuesday, PUNL are 91% down compared to their pre-pump value.
