The Stock Psycho Psych Themselves Up For Pumping Coroware, Inc. (PINK:COWI)

Should your investment broker tell you about a company that is:

• operating in three high-potential business segments
• offering service solutions across the globe
• featured in a list which supposedly contains ‘the most influential companies in the global robotic industry’

you would be better off not getting your hopes up.

There is only one company on the market which seemingly matches these criteria and it is a triple-zero pump job.
As you might have already known, the company in question is CoroWare, Inc. (PINK:COWI). Right now, there is a full-blown promotion in favor of COWI powered by third party Ruminate Inc. The latter has splashed out a whopping $400 thousand for the campaign. Darth Trader and The Stock Psycho, on the other hand, are the promoters in charge of the job. They have so far done their best to portray COWI in the best possible light. Does this rosy picture about the company resonate with reality, though? Let us examine the main points laid out in the emails touting the stock.

To begin with, both promoters, which are by the way run by the Nevada-based Focus Media Group, Inc., describe COWI as a leading developer of mobile robotics, as well as a worldwide provider of videoconference subscription services. However, that same company hit rock bottom at $0.0001 on Dec. 28 and was, until last Friday, a worthless triple-zero penny stock. This pretty much explains why its market cap equals the price of an unpretentious one-bath studio near Central Park. Sadly, this comparison is only valid on paper since, at $234 thousand, COWI‘s market cap is still way overvalued. As of Sep. 30, 2012, the company had:

• $3 thousand of cash
• $170 thousand in current assets
• $18.5 million (!!!) in current liabilities
• $236 thousand in revenue vs. net loss of $6.43 million.

Over the last four quarters on record, COWI‘s management has allocated close to $1 million for general and administrative purposes, including salaries. At the same time, the aggregate amount spent on research and development is a respectable $73 thousand. Not that it is our business to interfere, but,isn’t it supposed to be the other way round?

Or, alternatively, have COWI‘s managers led by CEO Lloyd T. Spencer already completed their R & D program, hence no room left for more improvements? After all, the company’s name already appears on that memorable list mentioned above. Too bad that there are more than one million websites in the world that have so far enjoyed greater web traffic than this one.

To wrap it up, let us take a look at the results of some of The Stock Psycho’s historical pumps:

• Green Energy Renewable Solutions, Inc. (PINK:EWRL) – promoted on Nov. 26 for an astonishing $225 thousand, EWRL did go up to $0.17 for a moment, only to write off 90% from its market value in a few weeks.
• Chimera Energy Corp. (PINK:CHMR) – touted on Sep. 20, 2012 for $57 thousand, the stock gained a mere 4% on the corresponding session and has since depreciated by a staggering 93%.

Altogether, letting the facts do the talking should take precedence over delusive promotional hype.