The Pump For Xumanii f/k/a Medora Corp (OTCBB:XUII) Couldn’t Have Gone Worse
It all started on May 1 when some of the newsletters connected to the Victory Mark entity (VM) sent out some emails regarding Xumanii f/k/a Medora Corp (OTCBB:XUII). VM, whose office is located in the Caribbean country of Belize, claimed that XUII is about to breakout and they also said that it could bring profits of up to 1000%.
That seemed unlikely. XUII‘s shares had been all but dormant before VM’s alert, as you can see from the chart on the right and there weren’t even any news coming from XUII‘s HQ that could suggest things are about to change. Nevertheless, VM, who received a whopping $500 thousand for their efforts turned out to be right. The hours following their emails turned into what can only be described as “trading frenzy” and in just one trading session XUII‘s price flew from $0.10 per share to as much as $0.2995. In other words, they gained 199%. The volume that XUII reached wasn’t too bad, either and while VM fell short of the 1000% gains that they promised, it is true that the traders who got their timing right walked away with smiles on their faces and money in their bank accounts.
What followed, however, caused quite a lot of tears to be shed as well. The day after VM’s first alert resulted in more than a third of the value being wiped out which caused quite a lot of confusion among the people who got hooked on the optimism that was spurring out of the emails. Having seen the massacre, XUII themselves, issued a press release before the closing bell on May 2 that was supposed to breathe a new lease of life in the stock. As we mentioned in some of our previous articles, the announcement itself was not terribly informative, but it still managed to draw some attention and while its timing prevented it from having any effect on May 2’s trading session, the next day saw XUII claw back 20% . The following three sessions, however, were quite disappointing and yesterday’s closing bell rang when XUII‘s shares were traded at $0.185 or 40% down compared to the high of the pump.
One thing is for sure – while it’s something of a surprise that VM’s emails managed to cause interest in XUII, there were a couple of factors that made the crash that ensued (and the losses related to it) inevitable.
The chief among which is the fact that when there is so much hype around a company that is barely traded, things usually end in tears. Take one of VM’s previous picks – Goff Corp (OTCBB:GOFF). There was a huge promotional effort for them during March and April, and the VM newsletters along with the infamous Awesome Penny Stocks played the major roles. In some of the emails we read that GOFF‘s shares could go as high as $1, but that never happened. There is, of course a very good reason for this – the company that the pumpers desperately tried to hype is in a terrible financial state. That is why when the newsletters abandoned GOFF, the ticker took a tumble and soon it was all up in a cloud of smoke.
Which brings us back to XUII. Just like GOFF, their financial statement reveals that they are not exactly flush with cash. But even if they had been a bit better off, we are struggling to see how things could have gone better.
XUII have been in the new business for no more than eight months. Before they came up with the idea of the social network-type website and the live broadcasting over the Internet, they were developing a platform through which they were supposed to sell coupons for holiday destinations. They have now abandoned that but even so, eight months is quite a short time frame for the development of the website, the software and the technology behind them.
Of course, VM, as well as the rest of the pumpers that decided to play with XUII, forgot to mention those things and this “small” mistake caused quite a lot of losses to inexperienced investors. That is why proper due diligence and in-depth research is absolutely critical when it comes to promoted small-cap companies.
