Joymain International Development Group, Inc. (OTCBB:JIDG) Rips Up the Charts

On Friday the share price of Joymain International Development Group, Inc. (OTCBB:JIDG) put on another 36%, stopping at a staggering $1.78 per share. Within the space of only seven sessions, JIDG went up over 380%. The reasons for this astonishing move up the charts are, sadly, a mystery.

JIDG is not being currently targeted by email pumps and there is no detectable effort to promote the company’s stock. The next thing to check for in the absence of pumps and similar chart movement would be an extraordinarily positive PR. Sadly, there is none of that either – the company’s OTC Markets news feed and its Yahoo PR feed are both empty and despite our best efforts, we could not find any trace of JIDG‘s corporate website, or of the company’s logo for that matter.

The latest quarterly report put up by the company lists the following:

• $733 thousand in cash
• $93 thousand in current liabilities
• $1.37 million in quarterly revenues
• $13 million in quarterly net loss

While it’s commendable that JIDG finally recorded its first revenue over the quarter ended January, the $13 million net loss are more than enough to sour the mood. Traders need to put things into perspective with JIDG. The company that last posted the above financials currently commands a market cap of $1.9 BILLION, having last reported 1.12 BILLION outstanding shares.

At the same time, the report mentions JIDG issuing 163,978,373 common shares to “34 distribution and development partners” in Jan 2015. The interesting part is that those shares were priced at $0.08 each – the “fair market value at the date of issuance”. While this is technically true, this was also a time when JIDG was barely trading, with a vast majority of zero-volume sessions for the month.

The company also had a S-1 registration statement recently approved by the SEC. The filing registers 51.7 million shares for resale and 49.3 of those shares were issued at $0.03 per share – another tidbit investors may want to keep in mind.

In light of the above, potential investors may want to pause a while to do some extra due diligence on their own before making any decisions.