The Pump of SIPP International Industries, Inc. (OTCMKTS:SIPN)

There was an unusual movement in the chart of SIPP International Industries, Inc. (OTCMKTS:SIPN)’s stock which was expressed in a rapid increase of stock price accompanied by a dumping fiasco.

Yesterday’s trading session was full of action for SIPN‘s stock. They opened rather high with an upstart from their previous close of $0.014 at $0.025. Their stock traded in a massive volume compared to their average of 21 thousand as a total of 6.7 million shares changed their owners in the trading session.

From the charts we can see that most of the dumping took place in the early hours and managed to drive the price down to $0.027, but as soon as trading quieted down their prices started to rise again reching a peak of $0.0486.They had a few more drops before market close in which they fell to $0.020, but managed to go up the charts and closed at $0.0339, which was a big 88% jump from their previous close generating a total trade value of $237 thousand with the volumes that it was traded in.

Today they started promising with an opening price of $0.0375, but their stock quickly started to deflate due to the lack of emails coming in from the pumpers which lifted the stock yesterday and touted SIPN vigorously all day, from market open to market close. SIPN‘s stock at the moment is one of the most volatile, because in just 1 hour it managed to drop 31% from its opening price and landed at $0.023, which cancelled out yesterday’s gain in price, quickly recovered to $0.0315, then fell again and now trades at $0.025.

It is very hard to tell where it will go from now, because there are no pumps and no press releases available through all of our sources and we can’t even find any news about the company in Google. Maybe this is because they are a company located in the People’s Republic of China and have a different business aproach, but if you have been reading out newsletter long enough you will most probably know that we tend to think companies located in China and traded in the OTC Markets are mostly scams. It’s not because we have anything against China, but rather because China is filled with scam companies that are being traded in the OTC Markets due to it’s political climate and laws.

SIPN haven’t filed reports with the SEC from 2011, but are filing according to the Alternative Reporting Standard in the OTC Markets and frankly we found some disturbing things in their latest report covering the first quarter of this year. You can see the numbers of prime interest from the report in question listed below.

• cash: $12 thousand
• total assets: $10 million (mostly in patents and trademarks)
• total liabilities: $852 thousand
• revenues: $0
• net loss: $0

We don’t really know how they operate any kind of business without having a net loss or at least costs for the equipment, storage, web page, electricity, salaries and……we can go like this forever. The facts show that SIPN is a very risky investment choice whose stock price is driven only by paid promotions. For their sake we hope that none of the emails have reached George Sharp, because he will most probably add them to the case he has against Eco Trade Corp (OTCMKTS:BOPT) and several other companies for spam and manipulation of stock prices.

Another Chinese company that is traded in the OTC Markets is Sino Agro Food Inc (OTCBB:SIAF) who haven’t stopped going downhill since the last time we wrote about them as you can see in the chart.