Makism 3D Corp (OTCBB:MDDD) Crumbles, Pumpers Seem Unfazed
Makism 3D Corp (OTCBB:MDDD) opened yesterday’s session at $1.12 per share and you don’t really need to waste hours doing a lot of due diligence to know that at these levels, the stock is ridiculously overpriced. MDDD is a company that has nothing more than an interesting (on paper) product that nobody has ever seen and around $15 thousand in total assets according to the latest documents. This makes it the perfect candidate for a paid pump.
The $2.75 million campaign started over the weekend and the people who know how these practices work, weren’t at all surprised when yesterday, around 1:00 PM, someone decided that selling should commence. By the end of the day, a total of 6.8 million shares had changed hands meaning that the dollar volume stands at a mind-boggling $6.02 million. The price was smashed – nearly 42% were wiped out and when the closing bell rang, MDDD was sitting at $0.64. The more experienced investors have probably managed to get out on time, risk-averse traders probably preferred to watch from the sidelines due to the numerous red flags, but quite a lot of people were caught off-guard and they are now wondering what will happen next.
Early trading seems positive. About an hour after the opening bell, MDDD stands at around $0.755 which is a full 17% above yesterday’s close and it looks like a healthy bounce is in the bag. Bear in mind, however, that there’s still quite a lot of trading to be done until the end of the session and as yesterday’s intraday chart suggests, things could go disastrously wrong really quickly.
Still, a bounce seems logical not least because the pumpers have not deserted the ticker. In fact, it seems that even the diabolical crash is not enough to keep the promoters quiet. Six email alerts have been sent since yesterday’s closing bell, the landing page has been given a slightly different design (though the content remains unchanged), and we can see that some traders are receiving brochures over the snail mail.
Stock Palooza, Super St0ck Plays and Buy Penny Stocks are now part of the pumping party while Paragon Report (and the rest of the outfits that started the campaign on Saturday) act as if nothing has happened and seem insistent that MDDD “needs your attention“.
Will this help the ticker get back to over $1 per share though? Time will tell, but we should say that things are not looking particularly bright.
The first reason for this can be found in the performance of other multi-million dollar pumps. Often, the hype pushes the price of a promoted stock up to ridiculous highs, which is followed by an inevitable crash. A bounce is expected if pumping continues, but there is always another drop. Fresh Healthy Vending International Inc (OTCBB:VEND)’s chart illustrates the pattern really well and if you take the time to check out the performance of other expensive pumps, you’ll see that virtually all the tickers are following it closely. If you look carefully, however, you’ll see that the secondary ascend never manages to reach the initial heights which is why, we reckon the $1 per share mark will remain nothing more than a distant dream for MDDD.
Things could go even worse. As we mentioned in our previous articles, the SEC is currently tightening the grip around small cap stock promotions. Sovereign Lithium Inc (OTCMKTS:SLCO), Life Stem Genetics Inc (OTCBB:LIFS), and Nevada Gold Corp (OTCBB:NVGC) received temporary suspension orders last month and people are speculating that MDDD is next. SLCO‘s suspension expired on Monday and the stock is now traded on the Grey Market… at a tenth of its previous value.
