Mike Norman Pumps Ultimate Rack Inc (OTCBB:UTMR)
We first wrote about Ultimate Rack Inc (OTCBB:UTMR) almost two months ago and, even if we do say so ourselves, we reckon that we did some proper research on the company. We found out, for example, that a couple of years ago, thirty-nine investors bought a total of 34,800,000 common shares (as adjusted for the 8-for-1 split) for just $43,500 (or $0.00125 a piece). We also mentioned that these investors would probably be really happy to see UTMR get pumped because the increased liquidity and price would allow them to cash in on the humongous profits. If you are one of those thirty-nine investors, you’re probably getting ready to open the champagne right now.
A person called Mike Norman has been paid $15 thousand (the total budget is not disclosed) and in exchange, he has set up a landing page dedicated to UTMR. He says that the stock can “double within the next six months”.
Apparently, the word is still not properly spread around, but we are seeing some movement in the volume department. Yesterday, for example, investors traded more than 309 thousand shares and UTMR closed the session at $0.94.
So, things seem to be heating up and if you are one of the aforementioned thirty-nine individuals who got the ridiculously discounted stock a few years ago, you might soon be faced with a rather huge profit opportunity. But what if you are a regular investor who is contemplating a potential buy order right now?
If that’s the case, you should be extremely careful. Although Mr. Norman seems to be mightily optimistic about the future, there’s no getting away from the fact that UTMR‘s financial statement is absolutely horrific. As we mentioned in our previous article, the company finished the quarter ended July 31 with no assets or revenues whatsoever, about $7 thousand in liabilities, and a net loss of around $19 thousand.
We should probably note that UTMR has issued some press releases since then. On October 7, for example, they said that a memorandum of understanding has been signed for the acquisition of a company called Custom Travel Service – an entity with an established revenue stream and a positive bottom line. Unfortunately, no further details or information has been given on the status of the deal.
Even if the acquisition does get completed, treading carefully might not be a bad call. After all, let’s not forget what happened the last time Mike Norman tried to pump a penny stock.
The company was called Nudg Media Inc (OTCMKTS:NDDG) and in September, Mr. Norman said that it is his “#1 stock pick”. Back then, his “#1 stock pick” was hovering just above the $1 per share mark. Right now, it’s sitting at $0.01.
Wonder what went wrong? You can find the details here.
