Penny Stock Parlay Pump of Smack Sportswear (OTC:SMAK) Keeps Sliding
After closing 36% down in Tuesday’s session, yesterday Smack Sportswear (OTC:SMAK) took another tumble. Left without the support of paid pumpers Penny Stock Parlay, the stock closed another 34% down at $0.21 per share.
Pumpers started touting SMAK stock about a week ago. Promoters Penny Stock Parlay, who received compensation amounting to $25 thousand, even managed to compare SMAK to established brands such as True Religion Apparel (NASDAQ:TRLG). This is a pretty bold statement, considering the situation around the OTC company.
SMAK announced in a press release the purchase of Team Sports Superstore (TSS). Prior to this deal the company had zero cash assets and never managed to generate a dime in revenue since its inception back in 2007, when it was incorporated as Reshoot Production Company. The so-called purchase itself was in reality a reverse merger. By sealing the deal TSS acquired over 75% of SMAK stock as payment and Mr. Sigler, the majority shareholder of TSS took office as CEO, Director and President of SMAK.
Traders who are curious to find out how the merger affected SMAK financially and what TSS brought to the table can find this information in a filing conveniently provided by SMAK. Sadly, TSS financials don’t look too good, if the consolidated statement contained in item 99.1 of the filing is anything to go by:
- $11 thousand cash as of June 2012
- $457 thousand current liabilities as of June 2012
- $227 thousand net loss for year ended June 2012
Adding this to SMAK‘s previously nonexistent cash and humble quarterly net loss makes for a pretty unpleasant picture. Last but not least, traders may want to know that Mr. Sigler, SMAK‘s new CEO, held more than 24 million shares in the company as of Dec. 6 of 2012.
With nearly as much volume as the previous session, yesterday’s trading saw many people lose cash. All traders are advised to do their own research and check all available sources of information before they invest in any stock, especially when it’s a penny stock, targeted by a paid pump.
