Malaysia Pro-Guardians Security Mgt Corp (OTCMKTS:MPGS) Bullied by the Pumpers
The paid promoters have been all over Malaysia Pro-Guardians Security Mgt Corp (OTCMKTS:MPGS) since the beginning of the month. The third parties have set aside a sizable $47 thousand for the pump and outfits of all shapes and sizes have sent 13 (and counting) emails.
In a word, this is not a small-scale campaign, but unfortunately, it doesn’t seem to be very effective. Prior to Damn Good Penny Picks’ first emails on MPGS, the ticker was sitting pretty quietly at $0.30 per share. Right now, less than three weeks later, it’s barely hanging on to $0.17. What’s more, there have been a couple of 25% drops, the latest of which occurred on Friday and took quite a lot of investors by surprise.
The thing is, MPGS‘ disappointing performance probably isn’t too shocking for the people who have done their due diligence. The pre-pump chart, for example, serves as a hint.
In the absence of the promoters, MPGS was a woefully illiquid OTC stock that nobody was interested in. Nobody was interested in it because the company has never really had anything substantial to show in its financial statements. Here, for example, is what it recorded at the end of September:
- cash: $20,757
- current assets: $200,757
- current liabilities: $21,125
- quarterly revenues: $30,000
- quarterly net loss: $53,411
Of course, we should probably point out at this point that the press releases (which seem to be suspiciously well timed with the promotional emails) don’t sound half bad, but it’s plain to see that investors want something more.
Basically, everything is clear as day. The stock is refusing to perform because whatever the pumpers say, MPGS is struggling to get its business plan going. There is one unknown that is niggling us, though.
We do know that during the third quarter of the year, MPGS issued exactly 30 million shares. Frustratingly enough, however, the report makes no mention of the newly issued stock and the people who got it. What we can say is that we know what MPGS‘ share printing habits have been historically and we can also say that if they’re still the same, the stock might be in bigger trouble than anyone thought.
The latest 10-K tells us that last year, MPGS sold a grand total of 2.5 million shares at $0.002 per share and 1.8 million shares at $0.005 per share. Needless to say, if these shares were to find their way to the open market, the effects on MPGS could be quite severe.
