What Is Pushing Joymain International Development Gp Inc (OTCBB:JIDG) Up?
Joymain International Development Gp Inc (OTCBB:JIDG) exploded up the charts once more yesterday, adding 51.16% to its market value in the span of a singles session.
To say that this state of developments was unexpected would be something of an understatement. The sudden spikes of buying that gave the ticker its initial thrust, as well as the stream of interest that pushed it even further up can clearly be seen on the charts. However, as odd as that may be, there doesn’t seem to be anything in particular causing the jump.
There are no new press releases, no pumps, no new filings and nothing that would otherwise suddenly catch the investors’ eye. Everything appears to be calm about the ticker – almost unnaturally calm.
Due diligence on the company does not reveal anything hype-worthy either:
- cash – $734 thousand
- current assets – $1.2 million
- current liabilities – $94 thousand
- quarterly revenues – $1.3 million
- quarterly net loss – $13 million
These are the numbers that can be found in JIDG‘s latest financial report. Even if you ignore the net loss, they could hardly be called impressive – and once you factor that in, they become horrendous.
However, that is not the only red flag JIDG investors should be wary of – not by a long shot.
Near the end of the first quarter of 2012, JIDG company sold more than half a million shares of its common stock at $0.05 a pop. The 300 for 1 forward split in 2013 has turned the said half a million shares into 155 million, which are currently worth $1.30 a piece.
That might look like ancient history, but investors shouldn’t be fooled – the practice continues now. On April 21, 2015, JIDG filed an S-1 registration statement which dealt with the selling of more than 50 million shares, most of which were acquired at a price of just $0.03 a pop. The statement has been declared effective as of April 27.
Investors should think long and hard on these facts, as well as the the fact that JIDG‘s market cap is currently $1,4 BILLION dollars, and would probably do well to act with caution.
