Research Driven Investor Tries to Revive Primco Management, Inc. (OTC:PMCM) for $40 Thousand
Ever since Primco Management, Inc. (OTC:PMCM) was jolted into life by a large round of stock promotions that started on February 7, the share price of the company has mostly been rolling downhill with a couple of brief pauses. After letting up for ten days, promoters are now back to tout PMCM.
Promoters at Research Driven Investor (RDI) were one of the many pumpers who sent out emails advertising PMCM stock over the weekend. The RDI email touts the usual things around PMCM – their merger with Eat Sleep Media Group, as well as their new hiphop producer CEO, Mr. David Michery. PMCM itself was largely a shell with $591 total assets and expenses for Q3 consisting only of accounting fees as of the date of their last quarterly report dated September 2012. The company seems to be tossed around like a hot potato a whole lot.
PMCM‘s filings detail a change of control in October when Mr. Zahoor Ahmad obtained controlling interest and became CEO. The next and latest official filing is the one regarding the new change of control, according to which the company is now run by Mr. David Michery and Mr. Alan J. Bailey who serve as directors, CEO and CFO.
The RDI pump touts the past experience of CEO David Michery and a recent acquisition of a musical catalog from D&B Music for approx. $350 thousand – a sum that currently sits only as a liability, as the company has yet to leverage the acquisition’s potential. The email calls PMCM a lot of good things, including a ground floor opportunity. Considering PMCM has done little but drop since it started trading actively this month, investors may be left wondering whether the 75% drop since the paid promotions for PMCM started is really the floor and if PMCM is not really headed for the basement.
RDI disclosed a compensation of $40 thousand for its weekend email alone. In addition, RDI advertised PMCM as their new “holy shmegma” pick. Whether the promoters meant that the new pick in question will smell like rotten fish in a matter of days or had some other, unknown meaning of the word in mind remains unclear.
RDI certainly have other pumps that did turn out rather smelly under their belt. One recent example is a promotion they ran on Global Security Agency, Inc. (PINK:GSAG). Once the pumping ended, GSAG was flattened 66% over the next two days. RDI pocketed $75 thousand for touting the stock despite its performance.
Investors would do well to tread very carefully around promoted stocks. Paid promotions tend to increase the inherent volatility of penny stocks and once the pumping stops, the swing is most often a downward one.
