Prince Mexico S.A., Inc. (OTCMKTS:LUVE) Pump Comes to a Halt
The onslaught of pump emails touting Prince Mexico S.A., Inc. (OTCMKTS:LUVE) continued after-hours yesterday and into the small hours of today. The paid promoters still tout the company’s supposed merits and promise huge returns of investment. Despite their best efforts, LUVE closed just shy of 3% up yesterday.
The uncertain shift a notch up the charts yesterday was probably not what paid pumpers expected, considering a serious amount of money has been spent promoting the stock. Yesterday we examined the pumps compensated with up to $350 thousand, with smaller promoters bagging a ‘mere’ $100 thousand. To date there have been over 60 email touts sent for LUVE in just three days.
In our previous article on LUVE we listed the major red flags around the business. Those include the company’s Pink Limited Information current status stamped on LUVE‘s OTCMarkets page due to the lack of a Q1 filing. What numbers investors have to use as reference for their investment decisions date back to December 2012 and are not particularly exciting in the first place:
- $8 thousand in cash
- $769 thousand in current liabilities
- $228 thousand in revenue for 2012
- $138 thousand in net loss for 2012
How pumpers manage to interpret those numbers as a sign of the bright future ahead of LUVE is never explained. The promoters tout the fact that the sporting goods sector is a lucrative one, generating billions of yearly sales in the U.S., as though the very presence of LUVE in the sector can guarantee them a hefty slice of that pie. That makes just about as much sense as claiming that a randomly chosen software startup will be the next Microsoft. Then again, when you’re being paid hundreds of thousands you can write just about anything.
Other stocks that garnered investor interest in yesterday’s session included iTalk Inc. (OTCBB:TALK) who generated significant dollar volume but slipped 9% down. Jammin Java Corp. (OTCMKTS:JAMN) were among those who closed red yesterday as well, tumbling nearly 9% in the last session.
Considering the fact that the pump for LUVE has run out of breath and failed to lift the stock even by a humble 5% so soon after it began, traders may want to watch out with this one, as the pendulum may swing the other way at any time, despite the sizable compensation handed to the pumpers.
