Rainbow International Corp. (OTCMKTS:RNBI) Gets Pumped to New Heights
Despite displaying the risks of both a paid pump and a new addition to the marijuana industry the stock of Rainbow International Corp. (OTCMKTS:RNBI) still attracts the attention of investors. Not only that but yesterday the company posted one of its most positive sessions after they surged by a little more than 20% and closed at $0.29 per share. The traded volume of 1.7 million shares was enough to put RNBI among the top traded pennystocks for the day.
The pumper carrying out the promotions is PennyStocks, a former affiliate of the notorious AwesomePennyStocks. The pump for RNBI began on May 14 but this week it shifted into a higher gear with a new email alert being sent daily for the past four days. According to the disclaimer PennyStocks are going to receive £250 thousand, or around $420 thousand, for a whole month of promotional services.
Well, that is unless the Securities and Exchange Commission don’t decide to intervene and put an end to the pump. For the past couple of months they have had their sights set on the marijuana industry resulting in more than 6 suspended companies with the latest one being Fortitude Group Inc, (OTCMKTS:FRTD) less than a week ago. At the same time the SEC have not been ignoring the paid pumps and most notably on May 14 put a stop to the $6.5 million promotion that was going on for the stock of Pingify International Inc. (OTCMKTS:PGFY).
Even if you ignore the dangers of the paid pump RNBI has enough red flags on its own. According to the latest quarterly report just three months ago the company had exactly:
- $47 total current assets
- $82 thousand total liabilities
- ZERO revenues
- $4346 net loss
After yesterday’s gains RNBI‘s market cap has risen to $79 million, sum that is grossly disconnected from the reality of the company. Not to mention that the current CEO bought complete voting control over the company for just $25 thousand.
There haven’t been any announcements of new sources of funds, in fact, the company hasn’t issued a single PR statement outside of their SEC filings. This leaves a lot of questions about their ability to “manufacture and distribute a premier product line” of hemp-based topical pain remedies. It should be apparent that RNBI is nothing more than a pump play. The company cannot sustain its currently inflated share price without the artificial hype created by the pump outfits. Do you own due diligence and plan your trades accordingly in order to avoid any unnecessary losses.
