Primco Management, Inc. (OTCBB:PMCM) Latest Run Proves Short-Lived
Wednesday’s thrilling ride that saw Primco Management, Inc. (OTCBB:PMCM) climb 70% and shift over 1.6 billion shares came to an abrupt end in yesterday’s session. The ticker opened up and ran for a few minutes after the bell, then took a nose dive it never recovered from, ending yesterday’s session 23.5% down.
The trigger that got traders hyped-up about Primco once again was a press announcement coming on Wednesday, informing the public PMCM entered into an agreement to acquire a ‘marijuana cooperative’ based in Seattle. This acquisition is not yet backed up by an 8-K filing even though PMCM stated that such a filing will follow, so at this point it’s just excitement about what the acquisition might bring to the table.
The company, previously torn to pieces by early 2013 pumping and left to simmer in triple-zero land, announced switching lanes and shifting to marijuana in the new year. Riding the pot hype bandwagon seems to work its magic on just about any stock and after trading as low as $0.0001 at the absolute bottom in January, PMCM managed to climb as high as $0.004 after announcing its intentions to try and make it in the pot sector.
The company is sitting on some uninspiring numbers published in its last quarterly report for the period ended September 2013:
- $115 thousand in cash
- $3.4 million in liabilities
- $43 thousand in revenues for Jan-Sep 2013
- $2.6 million in net loss for Jan-Sep 2013
Additionally PMCM managed to dilute its common stock by a mind-numbing 2400% in less than a year, going from 194 million shares in May 2013 to its current 4.8 billion issued and outstanding. The last time PMCM ran up was in mid-February and that one crashed hard and long. The red flags around PMCM stack to a number that should prompt any trader do their own due diligence and own research before making any rash moves simply because a company ticker and the word ‘marijuana’ appeared in the same sentence. The advice of the FINRA aimed at traders dealing with companies that suddenly hopped on the marijuana hype train is not much different and is still very valid.
PMCM is currently trading flat in the early session.
