The Inscor Inc (OTCMKTS:IOGA) Pump Explodes Into Life
When we first reviewed Inscor Inc (OTCMKTS:IOGA) a couple of days ago we thought that it will be a pump just like the ones that we deal with every day – the emails will fly around for a couple of days, investors will get excited, the stock will reach some heights after which it will drop like a lead balloon. And on the face of it, it looks just like a normal stock promotion. It started around May 14 and while the emails were flying around the price was steadily going up. On Tuesday it reached $0.74 per share which is quite a lot more than what we were seeing at the beginning of the month.
The last couple of sessions weren’t so great, however, and the volume was quite a bit smaller compared to the one at the beginning of the promotion and, sure enough, the ticker headed South loosing 5% on May 29 and a further 14% yesterday. Today we received a new set of emails from Penny Stocks Gone Wild and Penny Stock General and we decided to see if there are any developments around IOGA.
While we were doing the research we stumbled upon a website created with the sole purpose of touting the ticker. It’s a relatively simple affair – there are no links, pages or something to click on, but it is full of ridiculously optimistic claims about the future of the company. Basically, the pumpers tell us that the US Government is in quite a mess and that IOGA are here to help us. There’s even a video in which a smartly-dressed man seems to be sitting in his bedroom telling us all the things written on the page around him.
That’s not the biggest problem. After all, creating a website is relatively easy nowadays and the freedom of speech means that you can be as optimistic as you want about any penny stock company holding around $400 in the bank. The real problem lies in the annoyingly fine print at the bottom of the website. It states that an entity called Excelsior Partners paid $2,000,000 for the awareness campaign.
That reminds us of the pump on Cloud Star Corporation now known as Cloud Security Corp (OTCBB:CLDS). There was a similar website created for them back in March when the touting began and its disclaimer states that the people who did the effort received $2.5 million. As you can see from the chart on the right, all the pumping did produce a result and CLDS managed to reach their 52-week high of $1.47 per share towards the end of March. A lot of time has passed since then, however, and it’s pretty clear that the ticker is now heading back down where it probably belongs. While anything is possible, unless the promotional effort is renewed, we’re struggling to see how CLDS will manage to claw back some ground.
Unlike CLDS, however, IOGA do have one redeeming feature – a net income according to the latest financial report. Sure, it’s less than $300 for a full quarter, but some of the more adventurous investors might think that this is solely because of the initial stages of their development and if they’re unaware of the expensive pump, they might decide to jump in hoping for better results in the future.
If you are one of them, we would suggest that you take a look at our previous article, in which you will find what we managed to uncover about one of IOGA‘s founders, current Chairman of the Board and holder of around 120 million common shares (according to the latest annual report) – Mr. Keith McAllister.
And since we mentioned the management team, we should say that IOGA recently appointed an NBA star as the vice chairman. His name is Dominique Wilkins and we’re pretty sure that the basketball fans among you have heard of him. You might have also heard about a fight in which he was involved back in 2011 during a match.
In the interest of fairness, we should point out that according to this article, Mr. Wilkins was attacked by the his “sparring partner”, and we should note that some sporting stars do have a tendency of being a bit short-fused. A thing that worries us more than a quick brawl during a game, however, is allegations of mortgage fraud and according to this article Mr. Wilkins might have taken part in such a scheme. We reckon that before investing any money in IOGA, you should consider all these things very carefully.
