Multi-Corp Int’l (OTCMKTS:MULI) Talked into Rebounce by JackpotPennyStocks.com

Multi-Corp Int’l (OTCMKTS:MULI) traded cheerfully on the first day after a long weekend, apparently following the cues from a new promotional email. JackpotPennyStocks.com received $20,000 to claim that MULI is “in a squeeze” and may expect a robust and ongoing upward trend in the next days. On Tuesday, MULI added more than 36% to reach 36 cents per share.

Along with the email, MULI provided a summary of its recent audit in a special press release. M&K CPAS, PLLC is the new registered accountant for the firm since mid-April. In the press release, MULI values its reserves of oil and gas at more than 79 million dollars. However, reserves in the ground differ wildly from financial results, and in that department MULI is somehow weak:

• Cash: $0

• Intangible assets: $123 thousand

• Current liabilities: $476 thousand

• Revenue since inception: $0

• Net loss: $276 thousand

For MULI, other factors are at work, and one of them is the current CFO and former CEO of the company, Mr. Robert Baker. He steered another exploration mining company, Global Resource Energy, Inc. (GBEN) into a series of promotions and an ultimate crash.

Another red flag is that the company’s business address is located in a building of virtual offices, which may be a sign of tentative devotion to a stable business and rather an attempt to use the possibilities of the OTC markets for fast gains from pumps.

The paid emails have been coming every few days since May 17th, from various promoters with a past record of causing noise and hype around a ticker. The highest compensated is BestDamnPennyStocks.com, which notes a $1.2 million compensation. This may mean a longer campaign and a higher chance for MULI to make more jumps. Pumper David Cohen puts MULI‘s new price target at $2.75, a nice roundish sum. But all pumpers agree on one- both spikes and drops are absolutely awesome news for this ticker.

More red flags come in if we look at the record of JackpotPennyStocks.com. The pumper helped organize one of the very noisy promotions of the past months, that of Zippy Bags, Inc. (OTCBB:ZPPB). After the emails went silent, the ticker dropped to a tenth of its value, from 10 cents to a penny. If you choose to follow MULI or another penny stock, do your own research and mind the red flags, and avoid unaffordable investments.