mLight Tech, Inc. (OTCMKTS:MLGT) Gets Obliterated By The Pumpers

mLight Tech, Inc. (OTCMKTS:MLGT) is a publicly traded company that was incorporated back in 2010 with the hope of developing a suite of software solutions designed to help you set up and manage a network of computers. They published the financial results for the second quarter of 2013 a month and a half ago and it’s safe to say that things haven’t been going quite according to plan.

The Ding King Institute, Inc., on the other hand is a privately held venture that has been around for quite a bit longer (as evident from this rather fetching commercial) and they are working in a field that is altogether different. As you have probably seen from the video, they sell products for the paintless removal of nasty dents from your car and they have also begun offering training services for people who want to learn how to repair automobiles and, possibly, make money out of their new skills.

The two entities are about to merge and the press releases coming out of the management team are mightily optimistic. Projected revenues of around $10 million in 2014, new TV infomercials (we certainly hope that they will be as persuasive as the old ones) as well as various different projects have been announced during the last month or so. All in all, it seems like MLGT will finally be able to show us something real in the future financial statements. Before you get too excited, however, there are a few things to consider.

The first one is that the acquisition hasn’t really been completed yet. The closing will be done only when the audited balance sheets of the two entities are completed and that, in turn, brings in another problem – we’ve absolutely no idea what the new enterprise’s financial situation is.

Ding King have been on the market for a while now so it’s safe to assume that they have generated revenues, but the thing is, when you check out the customer’s reviews about the dent removal kit on Amazon, you’ll see that the negative opinions outweigh the positive ones. Some people are not quite sure about the training services – there are numerous entries on RipOffReport.com about Ding King and their CEO, Mr. Todd Sudeck (who is also at the helm of MLGT). In the interest of fairness, we should point out that most of the reviews and complaints are quite old and things might have changed since then. Yet, there is no one to guarantee that Ding King (and subsequently, MLGT) will be a profitable enterprise. This means that if you have put your money in the ticker, all you can do is sit and hope that the wind is fair, right?

Not really. There’s been a big promotional campaign over the last month and, as you can see from the chart at the beginning of the article, it has completely annihilated the ticker. The first emails came to our inbox at the beginning of September and they gave active trading a start. With their help, MLGT did manage to gain some ground registering a couple of green sessions but on September 5, 8.8 million shares changed hands resulting in a staggering 68% in daily losses. Some of the pumpers did try to apologize, while most of them simply went quiet, only to return on September 28 when a new wave of alerts flooded the inboxes. Investors interest was renewed and, once again, MLGT moved in the right direction… until yesterday when the ticker took another devastating blow wiping out around 44% of its value.

The bigger pumping outfits that took part in the campaign include Stock Mister (who received $112,500), The Stock Psycho a/k/a Darth Trader (who pocketed $50 thousand) and Damn Good Penny Picks (who are now $25 thousand richer). If you check out the track records of those newsletters, you will see that MLGT‘s devastating crash isn’t really that much of a surprise.

In much the same way, the disappointing performances displayed by Nutranomics, Inc. f/k/a Buka Ventures, Inc. (OTCBB:NNRX) and Alkaline Water Company Inc (OTCBB:WTER) shouldn’t be a surprise either and we reckon that keeping the charts on the right in mind when you are considering an investment in a promoted penny stock is something that you should definitely do.

As for MLGT, time will tell if they will come up with a financial statement decent enough to suggest some long-term potential. If the promoters continue to hang around the ticker, however, drops such as the one displayed yesterday are a definite possibility.