The Neologic Animation Inc (OTCMKTS:NANI) Primed For Another Pump

After the excitement from the rather expensive awareness campaign that took place last Friday died out a little, The Neologic Animation Inc (OTCMKTS:NANI)’s price headed south and in just two days, the ticker lost around 40% of its value. On Wednesday it bounced back by about 30% and after remaining level yesterday, it’s now ready for another round of pumps.

This time the campaign is not nearly as big as the one from last week. After the end of yesterday’s session we received a total of nine emails from eight different promoters (HSP Team, Vip Stock Alerts, MBSA, 24-7 Stock Alert, JetLife, DITR Stocks, Penny Stock General and Stock Runway). While the number of newsletters is quite a lot smaller than the one from the previous effort, we’re still pretty sure that the touting will have some effect on the performance of the stock, especially with the grandiose terms like “new eLearning giant” that some of the pumpers used.

The newsletter that got the biggest compensation ($6 thousand) is Stock Runway and we can see from their track record that they have talked at length about the solidity of various companies in the past and the end results have always been rather appalling as illustrated perfectly by Great Rock Dev Corp (OTCMKTS:GROC) who were the target of Stock Runway’s promotional email from April 21.

As you would imagine the performance history of the other newsletters currently participating in the NANI pump is also pretty ugly, but can they do the unthinkable? Can they finally go out of their own way and actually provide their subscribers with a serious company and a solid investment option?

Well, we have written a couple of articles on NANI already and we can see that at least when those articles were being published, the answer was “no” or at least, “not yet”.

NANI are still working on their eLearning system and while they said numerous times that they want to expand it outside China the cold hard facts show that it’s not ready yet. We mentioned that according to their latest filings, they plan to have it available throughout China between 2014 and 2016 and we also mentioned that things don’t appear to be working quite according to plan. This renders the talk of global expansion rather pointless, at least for the time being.

Nevertheless, NANI continue with the forward-looking statements and on Monday their PR department came up with another announcement. They said again that they are targeting people worldwide. More specifically, the people who are studying Mandarin. According to NANI, their number is growing by the minute and their eLearning system, will be perfectly suited for them.

Again, that may turn out to be true and if the system really is as good as they say it is, it could boost NANI‘s revenues immensely, but before all that, the platform must be up and running. That’s something that we have yet to see.

We’ll also need to wait for their next quarterly report for a little longer. Yesterday, they informed us that they will need some more time to finish it off and make it public. It’s rather important that they do it as quickly as possibly since NANI‘s shareholders have had no up-to-date information about the company’s financial situation for quite some time now and we’re pretty sure that they would like to see what’s going on.

Trouble is, even if the statement does look better than what we have seen so far and even if they finally manage to get the eLearning system up and running in the near future, the constant pumps threaten to bring the ticker even closer to the bottom of the chart. That is why a quick look through the promotional history before investing in any penny stock company is always a good call.