Multi-Corp International Inc (OTCMKTS:MULI) With a Bounce
The pump campaign for Multi-Corp International Inc (OTCMKTS:MULI) has not been going quite to plan. The first emails came in minutes after the trading session on May 6 began. On that day, MULI managed to gain a little over 18%, which is not that bad for a ticker that has hardly been traded before the pump. On May 7 and May 8, however, all the gains were wiped out and the ticker settled at the position that it occupied before the touting began.
Yesterday it managed to bounce gaining around 28% during the trading session but we really doubt that the third party(s) paying for the pump are happy with the performance so far. Actually, they are probably feeling quite angry right now considering the fact that they shed around $1.22 million on the campaign, and let’s face it, if you were the one giving away that much money to the newsletters, you would probably want to see some more movement from the ticker, as well.
Still, the massive scale of the pump means that the touting is far from over, so the next weeks and maybe even months could be quite interesting. The last couple of days showed that the ticker can move down as well as up, but there is a chance that all the hyping will give the price a boost. When that’s over, however, we could see a huge fall and a lot of disappointed investors. There are a couple of things that make us believe that this is exactly what will happen.
The first one is the pump itself. There are many people getting paid to draw the investors’ attention to MULI and among them is an entity called Murphy Analytics (MA). We’ve seen reports on various penny stock companies issued by MA and the funny thing is, the reports always coincide with an email (or hard mail) pump. This is no coincidence, actually, since MA also get paid to post their (supposedly) expert opinions in what looks like professionally put together documents. As we mentioned in one of our previous articles, in the case of MULI, the compensation was covered by an entity called Atlantis Properties, Ltd. and we’re quite sure that they would want to get some of their $5 thousand investment back when (if) the stock price gains enough ground.
When you look through some of the previous reports that MA have done on various companies, you will see that their expert opinions doesn’t always corresponds to reality. Take Bohai Pharmaceuticals Group, Inc. (OTCMKTS:BOPH) for example. Murphy did a report on them back in September 2010 when they said that the expected price target for the next 12 months is $6.45 per share. Then, in January 2011, they updated their report and the target that they quoted was $7.50 per share. The ticker has been nowhere near those figures and right now it stands at $0.41.
As for the emails, the bulk of the budget ($1.2 million) was pocketed by an entity called SIRI.BIZ. In our previous article we showed you how one of their previous picks, Zippy Bags Inc (OTCBB:ZPPB), performed after being pumped and now, we are bringing you another one – Green Energy Renewable Solutions Inc (OTCMKTS:EWRL) SIRI received $500 thousand for EWRL‘s pump that started in June 2012 and we reckon that the chart provides a good enough illustration of what happened.
Another thing that could hamper MULI‘s long-term success is what we see in their financial statements. More precisely, what we don’t.
We don’t see for example, up-to-date financial information. The latest quarterly report that they filed with the SEC is for the period that ended on September 30, 2012 and it says that back then they had no revenue and no current assets as well as $476 thousand in current liabilities.
With all these facts in mind, we’re really struggling to see how MULI will reach the $1.75 per share target that Murphy Analytics have set. In fact, if they are not able to provide us with some real proof that they are starting to conduct their operations soon, MULI will probably plummet sooner than anyone expects and we know what this will cause – huge losses to the regular investors.
