Primco Management, Inc. (OTCBB:PMCM) Delays Its Drop
The stock of Primco Management, Inc. (OTCBB:PMCM) became a target for pumps from the moment it started active trading and the results are not pretty. Starting from $0.25 in February it wiped 75% off of its price in just the first 3 sessions. The downward spiral hasn’t stopped ever since and currently the stock is well into double zero territories.
Fallen to such low price levels made the ticker extremely volatile and susceptible to the whims of the market. That is not always a bad thing and last Friday PMCM exploded by 577% in a single session on massive traded volume of 200 million shares.
The company tried their best to sustain the uptrend by issuing a couple of PR articles but the effect was limited and sharp corrections followed. Yesterday they closed 12% in the green on the names of Tank and 50 Cent. They were announced as guest artists on the future album of PMCM‘s artist Choo Biggz but investors weren’t nearly as impressed and volume although still significant subsided to 81 million shares.
And there are good reasons to be skeptical. PMCM financial situations is nothing short of dismal. According to the latest quarterly report the company finished the period ending March 31 with the following results:
- $148 cash
- $1 million total assets
- $1.1 million total liabilities
- ZERO revenue
- $82 thousand net loss
The picture gets even grimmer when Magna Corp, LLC became involved. The company is the most notorious supplier of toxic funding in the world of pennystocks. Investors have even created specialized pages tracking their dealings. Currently they hold 25 million shares just a little less than 10% of all outstanding shares.
In addition to the convertible note with Magna Corp, PMCM have issued two more, this time with Redwood Management, LLC for $600 thousand and $500 thousand, respectively. All three of the notes offer some juice discounts reaching prices as low as 55% of the lowest trading day during the eight trading days prior to the conversion date. 
Faced with the possibility of issuing such a large amount of shares PMCM were forced to increase their authorized shares from 500 million to 2 billion.
Pennystock companies often rely on the hype around famous celebrities in order to boost their stock. Another recent example are Premier Brands, Inc. f/k/a Tracksoft Systems Inc (OTCMKTS:BRND) who enjoyed a resurgence on the stock chart. The reason behind it was the announcement of Bad Boy Vodka that is associated with the NBA legend Dennis Rodman. The Awesome Penny Stocks long-time pick – Xumanii, Inc. (OTCMKTS:XUII) employed the same tactic a little while ago when they broadcasted Akon’s concert. Despite gaining 10% yesterday the stock is a long way from the $1 mark promised by APS.
