Zippy Bags, Inc. (OTC:ZPPB) Flattened by Pumpers
On Friday Zippy Bags, Inc. (OTC:ZPPB) saw an ugly drop of nearly 38%, flattening the company’s stock price to about where it sat before a wide promotional effort was launched on January 15. The paid pumps ran on budgets reaching as much as $500,000 but their result was short-lived.
After spiking on the first day of promotions, ZPPB gave investors virtually no chance to make a profit afterwards as the company mostly tumbled downhill from there. The latest round of emails came through on Jan. 23, when ZPPB was still trading for about $0.20. Awesome Stocks was one of the advertising parties, disclosing a compensation of $60 thousand for their efforts.
The promoters touted a press release from the company, where ZPPB announced their intentions to capitalize on the snowboard and cycling industries with their products that are described not just as exclusive but “very exclusive”, as well as downright “radical”. How the company is planning to achieve this is never explained. The realization of their plan is made increasingly improbable by their most recent officially filed financial report, dated September 2012. Here is a quick look at some numbers from the report:
- sixty-four U.S. dollars in cash
- $33 thousand current liabilities
- zero quarterly revenue
- $11 thousand quarterly net loss
The company was previously trading in miniscule volumes compared to the activity that the promotions caused and was flatlining on the price charts. The virtually nonexistent financial resources of ZPPB as per their most current publicly available information make it really hard to imagine how the company intends to develop its business.
The promoters at Awesome Stocks previously touted other companies that ended up in even greater disappointment for believers and subscribers. One of the Awesome Stocks pumps promoted Liberty Gold Corp. (OTC:LBGO). The company’s stock is now about 70% down from the last time Awesome Stocks touted it.
Investors are advised to do their own due diligence and be very careful with pumps that very often end up in disappointment and fail to run even in the short run so even the greedier among investors don’t get a chance to ride the hype and make a quick buck off it.
