Next Generation Energy Corp. (OTCMKTS:NGMC) Gets Pumped Again
A few minutes before the start of Friday’s session Next Generation Energy Corp. (OTCMKTS:NGMC) announced that they’re entering the medical marijuana business. Apparently, they are going to provide design manufacturing services which will include real estate management, marketing, staffing, sales training, etc.
Not surprisingly, the resulting excitement propelled the ticker towards the higher end of the charts. NGMC shifted more than 5 million shares on Friday and logged price gains of 117%. On Monday, it managed to add another 13.5%, but this time, the volume was smaller. Apparently, some people decided that this simply isn’t enough and a promotional campaign was initiated after the end of March 10’s closing bell. The effects were evident during yesterday’s session when NGMC registered a 30% jump and recorded a dollar volume of around $483 thousand.
Stock Runway (SR) and King Penny Stocks (KPS) are the outfits taking part in the pump and if you check out their disclaimers, you’ll see something interesting. According to the fine print, the two newsletters belong to one and the same entity – MantleMedia LLC. SR say in their alert that they have received $12 thousand for the advertisement campaign from a company called Actual Investments LLC. Curiously, KPS’ disclaimer quotes the same compensation figure, but a different paying party – Actual Gains LLC.
We were eager to check for potential connections between the two entities and, after a bit of digging around, we found out that there are some. Actual Gains is a stock promotional newsletter and they also have a website. When you check out the domain name registration of the internet portal, you’ll see that it was set up by Actual Investments LLC (screenshot link).
If you research a bit further, you’ll see that this isn’t the first pump campaign funded by Actual Investments. In fact, over the past three years, we have received more than 80 alerts on NGMC coming from a range of promoters. Not surprisingly, the stock performance has been absolutely shocking. What is curious, however, is the fact that most of the campaigns were paid for by Actual Investments LLC. So, why do these people want to pump NGMC so hard?
We can’t be sure, but we do read in one of the latest SEC filings that they own more than 16 million shares of common stock. If they decide to liquidate their position, the ticker might be in for quite a drop. Speaking of which, the people behind Actual Investments might not be the only ones who can profit from NGMC‘s inflated price.
An 8-K form published a week ago tells us that on February 13, an unnamed debt holder converted $30 thousand worth of debt into 10 million common shares. It also informs us that, at present, there are 228,346,094 shares issued and outstanding. According to the latest 10-Q which was published in November, the O/S count was hovering around 125 million.
The huge number of shares issued over the last few months means that there might be quite a lot of people who can cash in on the current price. It also means that NGMC‘s current market cap exceeds $12.5 million and that is too much for a company that has the following figures in its latest financial statement:
- current assets: $632 in cash
- current liabilities: $1.1 million
- quarterly revenues: $394
- loss from operations: $68 thousand
It’s quite clear that NGMC is surrounded by red flags at the moment. The huge number of outstanding shares, the pump and the fact that a shareholder is paying for it warrant a lot of extra caution. Considering all the risks is absolutely essential.
