Has Joymain International Development Group, Inc. (OTCBB:JIDG) Run out of Steam?

The mysterious run of Joymain International Development Group, Inc. (OTCMKTS:JIDG) up the charts seems to have come to a significant roadblock. After a spectacular push took the share price 350% up within the span of six market sessions, JIDG turned red and retreated nearly 20% from its new high.

The company’s movement on the charts over the last few sessions has been nothing if not spectacular. Sadly, it all took place against a backdrop of complete PR silence and no new official disclosure. The company has not put up any traceable press releases in the past. There have been no filings near the span of increased trading volume for JIDG either.

As a matter of fact, we were unable to find a website that belongs to the company, or even a social media profile for that matter. Searching high and low for something as simple as a corporate logo yielded no results either.

Despite all this white noise in the company’s information profile, JIDG is at least current with its filings. Here is what the last report for the quarter ended Jan 2015 shows:

  • $733 thousand in cash
  • $93 thousand in current liabilities
  • $1.37 million in quarterly revenues
  • $13.0 million in quarterly net loss

Those financials alone are hardly reason enough for traders to buy JIDG up all the way to an intra-day high of $2.79 on Tuesday. At this peak price the company’s market cap actually exceeded $3 BILLION.

At the moment JIDG commands a market cap of just over $2 billion. This is the market cap of the same company that issued 163.9 million common shares to “34 distributors and development partners” in early 2015, with each of those shares priced at $0.08.

There is also the matter with the company’s recent S-1 registration statement, which got approved by the SEC. The S-1 serves to register over 51 million shares for resale in the open market. 49 of the 51 million shares were issued at $0.03 per share.

Those should be just about enough red flags for investors to take a breather and spend some extra time doing their own research on JIDG before doing anything rash.

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