Medient Studios, Inc. (OTC:MDNT) Set up for Pump
When a new pump emerges, the key to not losing money is doing the due diligence. Today will be the first day of the pump job on Medient Studios, Inc. (OTC:MDNT), and some people will lose on this one.
So far we have received 4 emails from SurfsUpStocks, Whisper from Wall Street, OTC Stock Exchange, and PennyStockCrowd. MDNT will also get a push from NBT Equities Research (NBT) in the form of coverage and a tout report.
The newsletters received between $5,000 and $7,000 to pump MDNT. Their track records are underwhelming with all of their previous picks crashing soon after they had been pumped
NBT are no strangers to pumps, either. NBT initiated coverage of Boldface Group Inc. (OTC:BLBK) on Jan. 16 with a short term price target at $1.50. You can see how things actually turned out on the chart. Other stocks NBT have been paid to pump include IceWEB, Inc. (OTC:IWEB) in August 2012 and Echo Automotive, Inc. (OTC:ECAU) on Mar. 15.
In the case of MDNT, NBT has received 50 thousand shares from an unnamed shareholder of MDNT. Such pump scenarios usually arise when a third party holds shares in a company and can’t sell them because there is no active market, or it’s trying to dump them at a higher price. Those are the people who stand to make money on MDNT. In this particular case NBT will also benefit if it manages to inflate the price of the stock.
MDNT is focused on producing and distributing films in North America and India. The company has a relatively short operational history. So far it has been paying with shares, and seeing how the recently-published financial report shows $0 in cash, it may continue to do so.
About a month ago, MDNT announced it had executed an MOU for the development of movie studio complex in Effingham County, GA. There weren’t too many details and that project raises more questions about funding.
Readers should do thorough due diligence on MDNT before they decide whether they trust the claims of the company and the pumpers. They should also remember there are third parties holding millions of shares the can dump.
