Joymain International Development Gp Inc. (OTCMKTS:JIDG) Gets Mystery Boost
The OTC is an unpredictable place. Even though it’s perhaps more common to have people lose tons of money overnight, sometimes you see the opposite. Yesterday brought unexpected gains for shareholders of Joymain International Development Gp Inc. (OTCMKTS:JIDG). The company climbed nearly 50%. Was there any particular reason for such a massive jump though?
Short answer is – not really, no. JIDG has not put up new PR since, well, nobody really knows since when. The company’s Yahoo Finance PR feed has no releases, there are no company announcements made through JIDG‘s news section on OTC Markets. Searching for news that were for some reason only put up on the company’s official website is also a dead end – JIDG has no traceable corporate website. If you feel like playing a little game, you can go on your image search engine of choice and try to even find a JIDG logo – we could not.
At the moment JIDG commands a market cap of nearly $4 billion dollars. Traders should decide for themselves whether this valuation is adequate for a company that has under $1 million in the bank and last reported $13 million in quarterly net loss on $1.3 million in revenues.
The dismal losses are not even the worst part of the story. The last quarterly filing reveals that this same $3.85 billion company issued almost 164 million common shares to “34 distribution and development partners”. Those shares were values at $0.08 each – roughly 97% below the price JIDG closed at yesterday. This issuance happened in January 2015.
An S-1 filing that was given the green light by the SEC registered another 51 million shares for resale. About 95% of those 51 million shares were issued at $0.03 apiece – 99% below JIDG‘s current market price.
If traders like to chase pricey stocks that chart inexplicable mystery runs on zero material or any other news for that matter, dish out generous amounts of cheap shares and jump 50% on very thin daily volumes, JIDG might be just the thing for them.