Primco Management, Inc. (OTC:PMCM) Dips a Little Lower, Pump Rolls On
Yesterday Primco Management, Inc. (OTC:PMCM) closed nearly 4% further down, for a fourth day in a row, settling at exactly $0.05 per share. The pump campaign run by various promoters that started on February 7 and still chugs along seems to be having a really hard time lifting PMCM stock.
PMCM enjoyed a lot of promoter attention after announcing Eat Sleep Media Group acquired controlling interest in the penny stock. The company’s OTCMarkets information page currently lists Mr. David Michery and Mr. Alan Bailey as respectively CEO and CFO. However the latest filing available that reflects a change in control is one dated October 2012. It details the acquisition of 86% controlling interest in PMCM by a Mr. Zahoor Ahmad, whose name is currently nowhere to be found in press releases or pumps.
The pumps now tout the acquisition of a music catalog for the sum of $350 thousand and the signing of young urban singer Bruce E Bee who, just like the company, may or may not have a bright future ahead of him as he’s not achieved much yet. The current financial situation of PMCM is also a mystery. The latest available financial report from the company is dated September 2012, back when PMCP was a real estate management business and contains some hair-raising figures:
- $91 in cash
- $23 thousand in current liabilities
- $500 in revenue
How Eat Sleep Media Group entering the picture changed things is unclear. Investors are left guessing, a risky position when the acquired music catalog worth $350 thousand is right now just a liability which the company promises to turn into profit.
The promoters at OTC Magic pocketed $20 thousand to advertise PMCM in their morning email. The previous pumps crashed on heavy volumes, pretty much matching the trade volume on February 7 when PMCM went up. The situation around the company may be just a little too unclear and a little too much of a shot in the dark for the more cautious. It would have been great if PMCM was prudent enough to provide official filings detailing the goings on instead of rapid-fire press releases that serve as little more than hype.
Investors are advised to be extra careful when dealing with promoted pennies, especially ones that have extended pumps targeting them, even more so when the pumps have already crashed hard over several consecutive days.
