Imogo Mobile Technologies Corp. (OTCMKTS:IMTC) Gets Suspended
Yesterday at the start of the session the SEC suspended trading in the stock of Imogo Mobile Technologies Corp. (OTCMKTS:IMTC). The reasons cited for the decision were concerns regarding the “accuracy and adequacy of publicly disseminated information concerning, among other things, IMTC‘s business, revenue, and assets”. IMTC is going to resume trading on March 5 most likely on the grey market.
Usually after the end of the suspension the company loses around 80% of its value and IMTC certainly has a lot to lose. Thanks to the $3 million pump that was boosting their stock up the chart IMTC was sitting at more than half a dollar per share before the suspension.
On Tuesday the pump newsletter StockCastle and two of its affiliates sent yet another round of overly optimistic email alerts for the disclosed compensation of $800 000. In them they discussed the likelihood of IMTC soaring up to $2 per share after the company announced an iPad mobile office software. Well, they couldn’t have been more wrong.
In our previous articles about the company we warned investors that the involvement of StockCastle makes IMTC a likely candidate for an investigation by the SEC. Their previous pump for Nevada Gold Corp. (OTCMKTS:NVGC) also ended in suspension for the pumped company. Now with two promotions in a row meeting the same disastrous end StockCastle might be forced to retire much in the same way AwesomePennyStocks did. Or they can lay low for a while and ignore what happened completely, only time will tell.
Playing pumped stocks has always been risky even for experienced traders. Now though with the SEC springing into action once more it may be for the best to skip them altogether and look for other investment choices.