Media Analytics Corp (OTCBB:MEDA) Gets An Expensive Pump

$3.8 million is quite a lot of money. You can buy many things with these sort of funds but, apparently, the people standing behind an entity called New Level Media didn’t know what to do with them. They decided that the money can be put to good use by pumping a penny stock. The question was: “Which one?”. Apparently, Media Analytics Corp (OTCBB:MEDA) proved to be the best candidate.

We can see why. All the prerequisites are there – the recent change in business, the new name and management team and the stock split from a couple of months ago. If you’ve been around penny stocks for a while, you know that these are all signs of a paid pump to come and yesterday was the first day of active trading since MEDA changed the ticker. So, how did it go?

Well, it opened the session at $1.25 and started climbing almost immediately. At one point, it reached $1.40 but it then settled down to a more manageable $1.37. In total, more than 846 thousand shares changed hands pushing the dollar volume up to $1.14 million. Quite a day, you would agree, but considering the fact that MEDA is one of the newest pumps in Pennyland, we expect to see trading, even more intense in the coming sessions. But what do we have in terms of operations?

Well, not much. Until a couple of days ago, MEDA went under the name Fansport Inc. and they were trying to develop a sports-related social gaming mobile application. The latest 10-Q reveals that they failed to do that and instead left the company with:

• total assets: $2,476
• total liabilities: $10,142
• no revenue
• quarterly net loss: $2,544

The focus now is on providing social media analytics solutions through which advertisers, publishers and brand owners can monitor the activities on networks like Facebook, Twitter and Pintrest, so that they can better build the market for their products. While the pumpers say that the company is a “social media juggernaut“, we have no idea how well they’re doing since the latest financial report covers the second quarter of 2013 when they were still in the sports gaming apps business.

We do know however, that one person is taking care of the company at the moment. His name is Stephen Wong and he is the CEO, CFO, President and Treasurer. When the new business plan was drawn, Mr. Wong purchased a total of 76 million shares from the previous CEO in exchange for $300 thousand. This means that he currently owns around 75% of the outstanding stock and it’s valued at less than $0.004 per share. We reckon, that this is definitely worth keeping in mind considering the ongoing promotion.

And since we mentioned the pump, we should also point out how it works. At the moment, there’s nothing more than a landing page set up by a newcomer to the stock promotional world called Stock Report Baron (SRB). When we say that they’re a newcomer we mean it. The domain for their website, for example, was registered no more than two months ago.

Being a new outfit means that we don’t have a track record for SRB, but since we’ve covered so many big-budget pumps in the recent months, we might as well show you how they usually end up.

One of the latest failures is Alkaline Water Company Inc (OTCBB:WTER) whose shares crumbled over the last couple of sessions losing around 60% of their value. Virtual Sourcing, In (OTCMKTS:PGCX) slashed 45% yesterday which could suggest that the $750 thousand promotion might be coming to its inevitable conclusion as well. Of course, no collection of multi-million dollar flops will be completed without Arch Therapeutics Inc (OTCBB:ARTH), a ticker that is currently around 70% below its hype-induced highs.

Having in mind that MEDA‘s pump is even more expensive than the ones outlined above, we expect to see other promotional methods being employed in the near future (email alerts, paper mailer brochures, search ads, etc.). Even so, we can’t see how they will stop the ticker from burning some massive holes in the investors’ pockets. Make sure you have this in mind while considering your options.