Penny Stock Parlay Take the Gamble with Compliance Systems Corp (PINK:COPI)

Betting. It’s something that has attracted a lot of people since the dawn of civilization. Right now, with the world of sport being so popular, a lot of companies are trying to get rich by exploiting the gambling instincts of many people around the world. Compliance Systems Corp (PINK:COPI) seem to be one such business venture, but we’re still not convinced that they are on the right track.

And we really can’t be, considering the fact that they have been in the business for such a a short period of time. COPI acquired the licenses to a website called SeanieMac.com. It’s an Irish portal which will incorporate a sports betting platform through which you will be able to bet real money on all sorts of sporting events. Both COPI and the promoters who have been trying to raise awareness around them have pointed out numerous times that this is a multi-billion dollar industry and they are absolutely right.

Being a player in this kind of business, however, means that COPI‘s success will depend on a lot of unknowns and it also means that a lot of funding must be allocated to the marketing of their betting platform. They needn’t be bothered with these problems just yet, though. In fact, they have some more important issues on their hands right now. Like, for example, getting the website ready.

We covered COPI a couple of months ago and when we loaded SeanieMac.com back then, it looked somewhat different. Apparently, they have been working on the design and we must admit, it’s quite a lot more pleasing to the eye right now. The real problem is, none of the links that we can see really work, which would suggest that they still have a lot more work to do before they can get it going.

While they are busy with website development and the name change that they announced yesterday, several promotional newsletters among which Penny Stock Parlay (who have been very quiet for a while) have been paid to create quite a lot of stir around them.

At this point, however, we’re struggling to see what they’re on about. They are promising wealth and fortune from a company that right now has nothing more than an unfinished website, a pending name change and a few optimistic projections about how they are going to be a player in the betting industry.

There isn’t even a new financial statement could give us an idea of what COPI‘s financial situation is right now and if the latest one (the one for the third quarter of 2012) is anything to go by, they will be struggling to raise the finance for the completion of their website. Here are the figures as of September 30, 2012:

• cash: $130
• current liabilities: $1.4 million
• revenue: $0
• accumulated deficit: $9.4 million

Then again, the newsletters are paid to write their bright promises and the last time that they did it, it was back in January. We covered the pump and as you can see in our article, the paying party back then was Summit Trading Limited. As we wrote, Summit Trading had around 3 million freely tradable common shares. We feared that this could cause problems and, unfortunately we were right. After gaining a whopping 90% during the first day of the pump, COPI quickly lost ground and fell by as much as 50% during during the next trading session. While no one can be 100% sure, it’s only logical to think that this drop was caused by Summit Trading selling quite a lot of shares at a high price.

Now, a couple of months later, the third party for today’s campaign is not disclosed. While it is possible that Summit Trading have nothing to do with it, it’s worth noting that according to a Form 3 that COPI filed with the SEC, Summit are now in possession of more than 4 million shares of common stock.

Just another thing to consider while making your decision on COPI.