DMH International, Inc. (OTC:DMHI) Crashes Despite News

4DMHI_chart.pngOn Friday we covered a late-night pump that several promoter parties ran on DMH International, Inc. (OTC:DMHI). After climbing to a close 147% up on Friday, as the pump’s FDA approval tout drew traders in, yesterday DMHI stock crashed hard, closing nearly 50% down from its inflated high, returning near its Thursday values.

The promotions for DMHI started as early as Feb 27 but had a mostly negative effect as the price kept dropping. The pumping started together with the announcement that DMHI, an enterprise that had generated no revenues since inception, merged with Touch Medical Solutions. The Friday pump emailed past midnight was related to FDA approval granted to a TouchPACS medical software suite developed by Touch Medical.

It bears repeating that the product in question received FDA 510(k) clearance on January 6. It’s rather strange timing to announce that as the stock was already flattened and the pump campaign was ongoing.

It also bears repeating who was involved as legal counsel for DMHI from the company’s inception, according to their S-1 registration statement. The document as well the company’s OTCMarkets page lists Carrillo Huettel, LLP as legal counsel. Traders keeping a close eye on the world of penny stock pumps will remember the involvement of the same law firm in many of the ugliest pump jobs of the last twelve months that ended in complete disaster.

Before Carrillo Huettel vacated their U.S. offices, they were associated with pump catastrophes such as Southridge Enterprises, Inc. (PINK:SRGE) and Pristine Solutions who are currently trading under a new ticker as Eaton Scientific Systems, Inc. (PINK:ESSI). The charts for those stocks linked under the ticker symbols speak well for themselves and hardly need any commentary.

DMHI came out with another press release yesterday, concerning agreements with MyDICOM as well as another entity, information about which is next to impossible to find in a search engine, except in relation with DMHI‘s press release. The news didn’t help the stock at all, as it slipped throughout the session.

Virtually everyone who bought DMHI shares on Friday past the morning segment of the session is now sitting on a loss ranging from 5% to nearly 50%. Those who saw the red flags in our previous article may have started their own research and managed to avoid an unpleasant burn. Do your own due diligence and never trade on pump recommendations and hype that land in your email.

You may also like...