Smack Sportswear (OTC:SMAK) Files Uninspiring 10-Q, Pumps Continue
Over Friday’s session Smack Sportswear (OTC:SMAK) barely managed a green close, ending the day just 2% up, despite the unrelenting efforts of promoters pumping the company, who kept sending emails over the weekend.
The pumping for SMAK started as early as December 2012, when right after promoters said the company’s ‘finest hour’ was approaching, the stock crashed 60% in three sessions. Promos resumed in January and have continued practically non-stop since then.
SMAK have also just put up their delayed quarterly report for the period ending December 2012. The wait may have got hopeful investors a little too jittery with excitement over the announced results, which in turn are a bit deflating. Here is the short rundown of the consolidated numbers for Smack and Team Sports Superstore, for the final quarter of 2012:
- $6 thousand in cash
- $753 thousand in current liabilities
- $111 thousand in net loss
Those figures may disappoint many, especially coming among an avalanche of press releases about new deals signed by the company and just as many PR stunts involving famous sports persons. Team Sports, the entity that, after the merger, was supposed to drag SMAK out of oblivion, is obviously not doing too well. Debt has grown from $457 thousand in June to $753 as of December. The company doesn’t seem to be selling its products very well either, as inventory decreased by $17 thousand over the same period.
The promoters at Stock Lock and Load think SMAK have hit rock bottom and can only move up from here. Considering how the stock slipped following each previous round of pumps, this seems highly unlikely, and there’s still a long way to go to triple zeroes. The same promoters touted Crown Marketing (PINK:CWNM) in mid-January. That happened to be one of the ugliest percentile crashes of the season, with CWNM currently trading about 80% down from the spike of the pump.
Traders are advised to be extra careful with stocks targeted by paid promotions as those tend to crash hard once the pumper emails come to an end.
