Penny Stock Crowd With a Last-Ditch Attempt to Pump Mediatechnics Corporation (PINK:MEDT)
It’s a rule of thumb that while you are considering an investment in a company, especially when it comes to long-term plans, you have to ask yourself a couple of questions: “Which business sector are they operating in at the moment?” and “What is their plan of becoming successful?”. We have done that with Mediatechnics Corporation (PINK:MEDT) and we can honestly say that we’re unable to answer these questions.
The email from Penny Stock Crowd says that we should begin our research at the company website. So we did. The problem is that the website contains nothing but a phone number, an address and links (half of which don’t work) to various old financial statements. We were a bit annoyed by the lack of information, but we thought that maybe they are so busy making money, that they don’t have the time to make a proper website.
Still, they said something about their business in their financial reports, right? Wrong. Actually they did but the reports are so outdated, we’re unwilling to trust them, especially considering that nobody’s heard from MEDT for a while. Their business plan, back in 2011, was rather confusing as well. They talked at length about joint ventures and entering business sectors ranging from solar energy plants to Wi-Fi technology. They also said that they were on the verge of acquiring a private air transportation company, but now, a year and a half later, we can’t be sure if the whole thing worked out.
And all these talks about acquiring private companies and establishing joint ventures sound all too dubious considering the financial statements. We know that it’s extremely outdated but we have included a recap of the latest report that we could lay our hands on. It’s for the second quarter of 2011 and the most important figures are below:
- current assets: $140 in cash
- current liabilities: $25 thousand
- rental revenue: $5,400
- net loss: $5,009
So, with this sort of money they wanted to build solar power stations, develop wireless technology and transport people with private jets. It all sounds extremely unlikely, doesn’t it?
It seems that after the end of 2011 MEDT kept it quiet for a while until last week, when there were a couple of new press-releases. Pumpers, Penny Stock Crowd also moved in and sent out a total of six emails about MEDT‘s huge announcements.
The headlines stated that they are now in the business of selling LED lighting and hydroponic equipment to marijuana growers. That, supposedly, will bring them a total of $1 million in revenue. Then again, they said that they are expecting a huge income a couple of years ago, but nothing has happened. Or, at least, nothing that we know of, since there are no new financial statements. That’s the main problem. MEDT say that the new report is on its way, but until it’s published, the ticker remains an extremely risky investment option.
Having a relatively up-to-date financial statement is no guarantee for success, as the people who have invested in Viking Minerals Inc (OTC:VKMLE) will tell you. VKMLE got pumped by Penny Stock Crowd on January 24 and, once the emails stopped, the price tumbled, which is an all too familiar scenario when it comes to promoted penny stocks.
All in all, it’s highly unlikely that MEDT will prove to be a long-term option. The pump may provide some opportunities for a profit, but you will need to be extremely careful and play your cards right.
