Zippy Bags, Inc. (OTC:ZPPB) Squashed Amid $500k Pump by Sirius Stocks
Last Friday Zippy Bags, Inc. (OTC:ZPPB) was squelched nearly 25%, closing over $0.06 down. Despite the best efforts of pumpers, the Friday rally didn’t happen.
Promoters started touring ZPPB again last Tuesday, and pumper Sirius Stocks jumped onboard the campaign on the next day, disclosing a massive compensation of $500 thousand for advertising ZPPB stock. Sadly, it seems pumpers are able to tell their subscribers just about anything, including outright lies, so long as they pocket their ridiculous compensation.
In their first email, among a load of optimistic mumbo-jumbo, Sirius Stocks talk about ZPPB‘s ‘rock solid financials’ and quote $10 million in sales. However, the company’s filings indicate that they generated a total of $102 thousand in revenue, and this happened in their fiscal year ended March 2012. Since then the company hasn’t generated any revenue according to their official filings. Actually, here is an excerpt of their latest quarterly report dated September 2012, which demonstrates their ‘rock solid financials’ quite well:
- sixty-four dollars in cash
- $33 thousand current liabilities
- ZERO quarterly revenue
- $11 thousand quarterly net loss
In addition to their dreary financial state, $11 thousand in operating expenses doesn’t precisely make ZPPB seem like a booming business, unless they found a lot of charitable workers and partners. Before Jan. 15, ZPPB was barely trading and enjoyed next-to-none investor interest, which changed only because of the massive promotional email campaigns.
Pumpers went on to tout ZPPB, quoting short volumes and predicting a positive surge on Friday. Despite the supposed panic among shorters, the company managed to lose a quarter of its worth on that day.
Sirius Stocks are no strangers to huge monetary compensations for their pumps. Sadly, they’re no strangers to their picks crashing horribly as well. Last summer they ran a pump job on Global Gaming Network, Inc. (PINK:GBGM) that landed them another $500 thousand. That happened to be one of the ugliest crashes of the season, with GBGM stock crashing from over $0.40 to $0.01 or over 95% in a matter of 8 trading sessions.
Considering the huge monetary compensation handed out to promote ZPPB, the pump may manage to drive the stock price up again before the final crash but traders should know that it’s generally a terrible idea to trade on hype alone. Do your own research and be extra careful with any promoted penny stock as the crashes are virtually impossible to predict accurately.
