StockMister Joins the Pump for SMA Alliance Inc. (OTCMKTS:SMAA)
We thought that after several days with no positive effect the pumpers would admit defeat and move away from SMA Alliance Inc. (OTCMKTS:SMAA) but we couldn’t have been more wrong. The pump is going stronger than ever and another round of 10 alert emails were sent despite the ticker taking another plunge of 24% to close at $0.047.
This time the name of StockMister, one of the more notorious newsletters, definitely stood out among the myriad of lesser pumpers. They disclosed receiving compensation of $30 000 and in turn they paid $15 000 to Rising Penny Stock and its affiliates – SuperHotPennyStock, LiquidTycoon, PennyStockPickAlert to name a few.
In the touts they still rely on the same lines of bottom bounce and uptrend momentum we have been hearing the past few days. They must be hoping that with enough repetition they will eventually come true. But for now the stock has been going down losing around 75% of its value in the last week and a half with investors dumping more than 16 million stocks on the market in an attempt to bail out.
A possible reason for yesterday’s drop and the loss of confidence in the company is more than likely the quarterly report for the period ending March 31 that SMAA filed yesterday. We took a look inside and the numbers we found were in fact not that grim:
- $254 thousand total income
- $73 thousand cash
- $1.8 million total current assets
- $699 total current liabilities
- $69 thousand net loss
They are keeping their debt in a manageable levels and the net loss isn’t staggering. The company just recently launched the latest version of their lead generating software followed by a successeful beta testing of their new InstaPost program. This product is designed to expand the company’s operations beyond the automotive sector so a boost in revenues should be expected in the near future.
What probably scared investors away is the dilution that the stock has underwent in just 3 months. SMAA had 174 million common shares issued by the end of 2012 while now they have almost doubled that number to reach 300 million after the first quarter of 2013.
The ticker may crumble even further under the promotional pressure. Back in early February StockMister were praising Primco Management, Inc. (OTCBB:PMCM) for more than $100 000. When the moved on the stock was flattened to the ground and is currently trading for $0.0068.
That is why doing your own due diligence is a necessary requirement before committing to any trades.
