UOMO Media Inc. (OTCMKTS:UOMO) Bounces to Life
You don’t need to be registered with the SEC in order to have the stock of your company listed on the OTC Markets. Enterprises like UOMO Media Inc. (OTCMKTS:UOMO) reside on the Pink Tier and they use the Alternative Reporting Standards. If they are late with its reports, they’re stamped with a Limited Information or No Information sign. That’s what happens in most cases, anyway.
UOMO, it seems, is an exception. The company’s fiscal year end is April 30 which means that the management team were supposed to file the annual report before the end of July. They didn’t do that and they didn’t even publish a notification of late filing. Yet, right now, a month after the deadline, OTC Markets’ website still reckons that UOMO‘s financial information is “current”.
Although the people taking care of the classifications of the OTC companies apparently think that the lack of up-to-date reports isn’t too much of a problem, we reckon that investors should tread carefully. Especially in light of the fact that UOMO‘s most recent financials are quite dreadful:
- cash: $1,350
- current assets: $5,550
- current liabilities: $2,031,809
- quarterly revenues: $14,646
- quarterly net loss: $197,821
So, there are no up-to-date figures and the most recent ones are terrible. There are no press releases to suggest that anything has changed since then, either. All in all, UOMO is in a bit of a mess at the moment.
Investors, however, couldn’t care less. On Friday, they traded nearly 130 million shares and they pushed UOMO out of the triple-zero levels and on to a close of $0.0013 (more than twice the 52-week low logged on Thursday). Why did they do that?
Because Damn Good Penny Picks and the rest of the newsletters owned by Stellar Media Group LLC told them that they should. The promotion cost $12,500 and it started minutes after Thursday’s close. Clearly, it was off to a good start, but, as we’ve established already, there’s not much to support the ticker at the current levels for long.
It will have even more difficulties staying calm if someone decides to unleash a huge amount of cheap stock on the open market. The people who received 204,545,453 shares as a conversion of debt at $0.0002 per share in January, for example, could really wreak havoc with the price.
