Molecular Pharmacology (USA) Limited (OTCMKTS:MLPH) Pumped to Life
Pumpers often use technical analysis in an attempt to persuade you that their OTC picks are about to go through the roof. Generally speaking, in Pennyland, technical indicators don’t have much influence on the performance, and when the stock in question has been hideously illiquid for months on end, analyzing the chart becomes even more absurd. Yet, VIP Penny Stocks, OTC Fire, as well as some of the newsletters owned by Stellar Media Group decided to use the technical setup as the main argument in their pump emails for Molecular Pharmacology (USA) Limited (OTCMKTS:MLPH). The pump worked.
The alerts started hitting investors’ inboxes mere minutes before the opening bell. Neither of the newsletters disclosed any compensation, but despite this, the promotion had an immediate effect on the market.
In a matter of just six and a half hours, investors traded more than 5.2 million shares which pushed the dollar volume up to nearly $90 thousand. MLPH burst out of sub-penny land, it hit an intraday high of over $0.02 and it came to its highest close in a year and a half: $0.016 per share.
Whatever the pumpers tell you, the remarkable jump isn’t due to any sort of technical indicators. It’s all because of the emails. While this isn’t an excuse for telling you something that isn’t entirely true, we must give it to the promoters – they simply didn’t have much to work with when they were told to tout MLPH.
Here, for example, is what the latest 10-Q looks like:
- cash: $1,517
- current assets: $8,844
- current liabilities: $2,107,718
- NO revenues
- quarterly net loss: $29,026
The financials look pretty horrific, but when you consider the fact that they’re now more than a year old, things get even grimmer. After publishing the report for Q3 of last year, MLPH decided not to bother with any more 10-Q’s and 10-K’s. Instead, on March 5, 2015, they terminated the SEC registration. Many people expected them to adopt the alternative reporting standards, but MLPH thought better of it and went quiet.
We have seen no press releases for more than a year and the company website has now gone west. Basically, there’s no shortage of things to suggest that MLPH is now dead. What the stock is doing still listed on the OTC is a question we simply don’t have an answer to.
What we can tell you is that thanks to yesterday’s promotion, the company profile is now stamped with a Buyer Beware sign. We reckon that you should consider it carefully.
