The Massive Promotion of Hokutou Holdings International, Inc. (OTCMKTS:HKTU)
The stock of Hokutou Holdings International, Inc. (OTCMKTS:HKTU) wasn’t going anywhere for quite some time until January 7 when the company announced its new Board of Directors and the acquisition of Platinum Pari-Mutuel Group.
Then, the ticker livened up and jumped 100% in price. What followed was a paid promotional campaign which started on January 12 and was led by David Cohen, who received $75 thousand and the emails that flooded our inbox have surpassed 50 by now.
The latest news coming from HKTU announced a $152 thousand contract between their wholly owned subsidiary Platinum Pari-Mutuel Group and Epic Web Solutions, which is a digital marketing and technology firm.
What bothers us the most is how on earth are they going to fullfil their contract agreement when their financial report covering the period ended September 30, 2013 contains these numbers.
- cash: $0
- total assets: $0
- total liabilities: $30 thousand
- revenues: $0
- net loss: $300
What is even more bothersome is the legal complaint, that we wrote about in our previous article, concering a small cap company called Global Pari-Mutuel Investments, traded under the symbol GPRM in which Mr. Cannon and Mr. Egide (two of the newly appointed directors in HKTU) were part of the management team.
Alongside the news of the $152 thousand contract we were informed of a research report on HKTU by no other that Goldman Small Cap Research (GSCR), who we remember for the paid touting of so many companies we don’t dare to list them all here.
One of them was Endeavor IP, Inc. (OTCBB:ENIP) whose research report by GSCR was posted on October 16 which led the stock above $1 per share in November, but then it started to look bad and dropped as low as $0.50 by mid-December. You can check out the dreadful chart to the right to get a visual feeling of what happened to the people who invested in ENIP.
In any case, be sure to do a lot of due diligence and weigh out the risks if you have any ideas of investing in HKTU, especially while it’s being so heavily promoted.
