Umax Group Corp. (OTCMKTS:UMAX) Shaken Down from Heights
A shakeout, a buying opportunity- those are some of the rationalizations for the drop of Umax Group Corp. (OTCMKTS:UMAX). The stock closed on Monday at $2.19, losing 24% of its value on dollar volumes above $400K. The stock was nearing $3 when the selling happened. 
UMAX waves a lot of red flags, the first one being the uncertainty of the address- an office building in Los Angeles, California, and another street address in Poland, on another one of the company’s profiles. The US-based office is not explicitly seen in pictures, and it seems located in an urban area, surrounded by small shops and hair and nail salons. UMAX is supposed to offer various health supplements, but lists itself as a development stage company, and there are no news of products ready to be marketed. 
UMAX shot up from $1.50 since March, and generally increased its activity in 2013, posting regular quarterly filings and yearly results. Still, we did not manage to intercept a promotion for this ticker, though it may have benefited from a general bull market.
But the fallout is indeed shocking, so at $2 UMAX is still not receiving any stability guarantees. We will keep tracking this ticker for further developments, but so far it seems UMAX was lifted by the bull market in 2013. As for the underlying supplements business, this is how the company lines up:
- Zero cash and cash-like assets
- Zero assets
- $20,000 current/total liabilities
- Zero revenues
- $34,000 net loss
So UMAX is brand-new, so far with very limited activity- and a phenomenal market cap of more than $213 million, on 97,6 million shares outstanding. Indeed, UMAX seems like a joke, when we compare the 20K borrowed to start selling food supplements to the giant success on the stock markets.
At first sight, UMAX looks like one of those solid, but little-known penny stock companies, but it seems like the perfect company for a disproportionate price inflation.
As for more solid companies that have had a good run in 2013, Vapor, Corp. (OTCMKTS:VPCO) seems like a good enough selection, reaching $1.30 in the summer, but sliding back to hover around the dollar levels.
But Virtual Piggy, Inc. (OTCBB:VPIG) did not have such luck, sliding from $3.20 to start moving below the $2 levels, though not as precipitously.
The sharp movement around UMAX may create more interest in the next few days, but avoid investing unaffordable sums for a company that tries to begin a business with a small sum, while making fortunes on the OTC markets.
