Smack Sportswear (OTC:SMAK) Pumps Resurface
It seems when you persevere you can do almost anything. Pumpers touting Smack Sportswear (OTC:SMAK) proved this once again, as the ongoing stock promotions for the company keep generating volume despite the poor price performance.
SMAK has been pumped to the moon and back, with the earliest rounds of promotions starting in December. The first crash was, as usual, the most spectacular, as the stock tanked over 50% in three sessions. Pumpers ran out of ideas how to tout the company in the middle of tremendous shareholder losses, so they went on vacation for a while, returning in early January. The promo generated even greater volume and crashed within a day, dragging the price down once again.
Pump mails for SMAK to date exceed 100, with almost a dozen sent out only over the last two days. The latest promotions tout a deal signed by the company with a volleyball association in Ohio. Much like all the previous announcements of numerous contracts signed with sports personalities and openings of new outlets in various locations, the news did very little to help SMAK stock move up.
Investors are still expecting the company’s due quarterly report for the quarter ended December, after SMAK switched their fiscal year end from December to June. With no official filing traders have to go off the currently available information and that is a cashless, revenue-less SMAK merging with Team Sports Superstore Inc., who according to the consolidated information provided in the merger 8-K had the following as of June 2012:
- $11 thousand in cash
- $457 thousand in current liabilities
- $227 thousand in net loss for the years (sic) ending June 2012
From this point on it’s all press releases and news from SMAK, including the addition to the company’s team of former True Religion CFO Charles Lesser, who seems to have a history of working with pumped company after his tenure at True Religion ended. Lesser was appointed CFO and President at Omni Ventures Inc. (PINK:OMVE) in 2011, during a pump campaign for OMVE stock. OMVE is currently trading at half a cent.
Despite the number of pump emails sent yesterday, SMAK generated a volume of over 1 million shares but still closed 4% down.
Investors are advised never to invest in companies targeted by paid promotions as such stocks tend to move on hype and pumps and not on actual performance.
