M Line Holdings, Inc. (PINK:MLHC) Touted by Charitable Promoters
Yesterday nearly a dozen pump emails were sent, advertising M Line Holdings, Inc. (PINK:MLHC) stock. Promoters disclosed zero compensation, in cash or otherwise, possibly in an effort to improve their track record at the expense of the company.
The pumps, sent by at least four promoters, tout the very small market cap of MLHC, sitting at $1.2 million, and the low price per share. MLHC are a company engaged in the business of refurbishing and reselling metal cutting machinery. Their financials are surprisingly decent for an OTC company but are not without fault. MLHC‘s most recent financial report is for the quarter ended December 2012 and contains the following:
- $160 thousand in cash
- $4 million in current liabilities
- $2.5 million in quarterly revenue
- $400 thousand in net loss
The company’s gross profit has shrunk year-to-year and operating expenses have gone up on smaller sales revenue, leading to nearly half a million in net loss. In Q3 of 2012 the company logged another another $300 thousand in quarterly loss.
The company’s float is another questionable matter. The pump mentions a float of 7 million, which is on the company’s OTCMarkets page, but dates back to 2011. Yahoo Finance seems to think the float is 37 million – a very sizable difference.
Considering the very slow trading history of MLHC, with just a dozen sessions shifting shares in 2013, this promotion is a strange one. Pumpers Awesome Penny Pick currently touting MLHC do need a pick that doesn’t crash as hard as their recent paid ones. In early February they promoted Sotuern ITS International, Inc. (PINK:SITS) – a disaster of a pump job that crashed quickly and is currently sitting 85% below the pump spike. Awesome Penny Pick pocketed $200 thousand for a job well done.
Traders are advised to be generally careful with any company that is promoted, even when the pumpers are not getting paid. Even if those instances are a somewhat safer bet, they still move unpredictably and can crash once the emails stop coming.
