The Chart Demise of Primco Management Inc (OTC:PMCM)

We told you so.

Last Friday, we provided you with an overview of Primco Management Inc (OTC:PMCM). We told you about the ongoing pump job on the stock and how it was not going to work in your best interests. For those of you who did not believe us, here is a quick recap of the situation.

After we suspected that the promotion in favour of PMCM shares might have already exhausted its potential to give the stock a boost on the charts, PMCM sank like a brick on the session which took place on Feb. 8. Closing trade at $0.0697, the stock lost a whopping 63% in value while shifting in excess of 8.6 million shares in volume. Today, the same movie is being rerun: fifty minutes into the current session, PMCM shares have written off an additional 27% from their market value in spite of the yet another bombastic press release which has just popped up.

As we mentioned here, PMCM has just undertaken a major shift of business. Having previously existed as a real estate management company, PMCM has now opted to become a leading force in the audio and video entertainment industry. In this respect, the company has just announced the acquisition of an “estimated multi-million dollar asset”. However, until PMCM turns “estimates” into real figures, the company will have to assume all the liabilities of this asset, i.e $350 thousand. How exactly CEO David Michery will pay for them is a good question in this connection.

Now that the pump job on PMCM is officially over, there is little to suggest that promoters will want to get involved in another campaign in favor of the same stock any time soon. The company still has a long way to go before it acquires enough assets to implement its new business plan. Unless managers take another drastic turn in the meantime.