Makism 3D Corp (OTCBB:MDDD) Breaks the Silence
Makism 3D Corp (OTCBB:MDDD) has been on a huge rally recently. Despite the fact that the company profile on the OTC Markets received a Caveat Emptor badge last Thursday, the ticker logged three consecutive green sessions with total gains of no less than 80%.
Yesterday, MDDD was off to a shaky start, but despite this, it managed to regain the lost ground and finished the day 10% in the green. Dollar volume amounted to nearly $1.7 million and the closing price stood at $0.865. Many people were wondering before the start of today’s session if a correction isn’t in order.
Normally, the threat of a consolidation under such circumstances is quite big. The ticker has already gone high enough and the market cap is now well over $50 million. Let’s not forget, however, that in the case of MDDD, the run is fueled by a $2.75 million promotion. As we mentioned yesterday, the newsletters stopped sending in their alerts last week, probably scared by the skulls and crossbones designation, but even so, the pump is far from over. The landing page is still live and we heard rumors about a paper mailer campaign which were later confirmed by some of our readers in the comments under yesterday’s coverage.
Pumps through the snail mail usually take some time to take full effect which means that some more green sessions won’t be surprising. Today seems to be one of them as about half an hour after the opening bell, MDDD is standing well above the $0.90 per share mark while the volume seems quite high.
This time, though, it’s not just the pump that is fueling the movement. The company itself lent a helping hand (intentionally or not) by issuing a press release with which they want to update their shareholders on how things are going. The announcement informs us that they want to start production of their Wideboy printers during the first quarter of 2014 (which begins in just three weeks) and to do that, they are currently carrying out negotiations with several component manufacturers in the UK. They are also planning on relocating their headquarters and said that they will be happy to look through the CV’s of some engineering specialists. Not a word has been said about recruiting additional people, but the management team invited anyone who considers himself a 3D printer expert to send them his resume. On paper, the press release doesn’t sound too bad, but when you think about it, you’ll see that there are some eyebrow-raising factors.
The time frame seems particularly optimistic. Many huge companies spend millions of dollars and years of research and development before coming up with a product in the 3D printing sector. Yet MDDD, who were incorporated a year ago and have around $350 thousand raised through a private placement now claim that they can do it within the next four months. You would agree that the deadline sounds a bit far-fetched.
Nevertheless, investors are as optimistic as ever. Which, by the way, adds another layer of risk.
At this point, the value is already quite disproportionate to the actual facts and figures that MDDD have to show us outside their optimistic press releases and good-looking website, which means that a drop can be expected at any moment.
It wouldn’t have been so bad if it wasn’t for the $2.75 million pump but the fact that it is continuing suggests that there are still some people that can benefit from the artificially inflated price. If they decide to cash in, the ticker could be in for a drop similar to the ones displayed by Fresh Healthy Vending International Inc (OTCBB:VEND) and Nutranomics, Inc. f/k/a Buka Ventures (OTCBB:NNRX)which is why, careful timing and consideration of all the risks is absolutely essential.