Makism 3D Corp (OTCBB:MDDD) Gets a Caveat Emptor Badge

A definition of the word “Makism” has been strategically placed on the homepage of Makism 3D Corp (OTCBB:MDDD)’s website. As it turns out, MDDD is named after “a movement to bring the future into existence“. Unfortunately, the company’s own future is in great peril at the moment.

As you probably know, a paid pump started at the beginning of the month. The budget stands at $2.75 million and we mentioned numerous times that the timing of the promotion is absolutely dreadful. The SEC began to pay more attention to penny stock pumps and in November alone, three companies received trading suspensions.

Despite this, MDDD‘s campaign was off to a flying start when on Monday, the trading volume exploded. Even so, investors were nervous and the performance from Tuesday showed that their anxiety was not unfounded. More than $6 million worth of shares changed hands in just six and a half hours, while the ticker plummeted by more than 40%.

Yesterday, it managed to make a small bounce when it finished the session at around $0.73 and some of the more inexperienced investors even think that this could be the beginning of a new, more prolonged run in the right direction. Unfortunately, this seems unlikely.

It would appear that the people governing trading on the OTC Markets are starting to pay attention to the abnormally large interest surrounding the company. The stock is not suspended as of right now, but a Caveat Emptor badge has been placed on the ticker’s profile at the OTC Markets’ website. “What does that mean?” – you’re probably wondering.

Well, generally speaking, the skulls and crossbones designation is placed for a number of reasons and the people who put it there can take it off in case they decide that there’s nothing wrong. The thing is, a ticker that was dormant until a month ago doesn’t just gather a dollar volume of more than $5 million out of thin air which has probably prompted the OTC Markets to put the Buyer Beware warning.

Things could get a lot worse if the SEC decide to see what’s going on. As we mentioned in one of our previous coverages, there are now people working full-time, monitoring the activity around small cap stock promotions. At the moment, MDDD is one of the biggest and most expensive pumps out there, so an interference from the regulatory organ seems logical.

Despite all this, investors act as if nothing has happened. About an hour into today’s session, the number of traded shares is nudging 1,000,000. The ticker seems to be fluctuating up and down but, as you probably know, a downward trend could be created within minutes. Especially if people hear about the Caveat Emptor badge.

MDDD had enough red flags to begin with, but now, with the skulls and crossbones designation, the risks are even higher. Timing every single move is absolutely crucial if you want to avoid losing a huge part of your investment. A lot of people were caught off-guard when Sovereign Lithium Inc (OTCMKTS:SLCO) got halted a couple of weeks ago. As you can see from the chart on the right, many investors now have a huge hole in their pockets.