The Results From The Pump of Compliance Systems Corp (OTCMKTS:COPI)
The last two days that Compliance Systems Corp (OTCMKTS:COPI) was pumped were April 20 and April 22. In those days we saw a classic case of dumping with over 1.5 million shares traded for COPI who have an avarage trade volume of 184 thousand.
In those days insiders made a reasonable amount of money with both trade sessions having a total of around $400 thousand in trade value when an avarage day of trading for COPI goes with $5-$20 thousand in trades.
We sure hope that those insiders are thinking for the future of the company and that at least a part of this profit will be for the company itself. The last press release that COPI made was yesterday and contained some good news for investors.
It is regarding the approval they received from Apple for the application that they made for the SeanieMac.com betting platform. They said that it was going to be launched immediately for iPhones and iPads and thats what happened. If you look in Apple’s app store you can already see that it has been released and is available for free download.
That’s the good news. The bad news come when you see that later in the day that we last covered them (April 20) they released their financial statement for the quarterly period ended March 31 and it still doesn’t look good. They had no revenue until then, but lets check out all the numbers of prime interest which are listed below
cash: $4.3 thousand
total assets: $105 thousand
current liabilities: $1.5 million
revenue: $0
net loss: $142 thousand
Furthermore when you take into account that they only have 41 million shares outstanding out of 2 billion authorized you start to think about things like the amount of stock that they are going to issue for acquisitions, debt to creditors, and as compensation of its officers and the dilution that it may cause for the stock if the company doesn’t get better financially.
The report also contains information about the issuance of 10 million shares by court order to some of its creditors in exchange for a $500 thousand debt that was owed to to them. Well, guess what. Those creditors would most certainly want money instead of the stock of a company that is yet to prove itself as being profitable and at the current price of $0.110 the total selling price of those 10 million shares would be over a million which is double the debt that COPI owed to them.
However, as we see the company’s peak volume is about 1.5 million traded shares so those shares might be sold in days that the stock is pumped. It may even be the case that the dumping is not done by insiders but by the above mentioned creditors and that they are the ones paying the pumpers.
Being in the current situation (the company has yet to prove having a profitable business) we would advise investors to do their due diligence and weigh out the risks before deciding to invest in COPI.
