Multi-Corp International Inc (OTCMKTS:MULI) Finally Provides an Update

8MULI.pngBack in April Multi-Corp International Inc (OTCMKTS:MULI) announced that they have changed their auditing firm which had prevented them from publishing the annual report for 2012 on time. In May, they informed their shareholders that they’re working hard on sorting out the paperwork and that the statement will be out “in the very near future“. Now, five months later, we’re still waiting for the 2012 10-K. And the 10-Q for the first quarter. And the report for the period between March and June.

This means that the most recent financial information is more than a year old which should be enough of a red flag normally. With MULI, however, you need to consider some other things as well. The chart clearly shows that the stock performance over the last months hasn’t been perfect. In fact, it’s been pretty devastating. MULI was the target of a virtually non-stop promotion throughout May, June and July. While the touting managed to push the price to the unimaginable 52-week high of $1.69, it also succeeded in destroying it shortly after. Last Wednesday the value was standing at just $0.27 which represents a loss of around 84% in no more than five months. On Thursday and Friday, however, MULI registered a couple of green sessions and some investors might be thinking at this point that the ticker will manage to get back to its former glory. Will this happen though?

We seriously doubt it. The positive end of last week’s trading was caused by a renewed effort from the pumpers. This time the culprits are David Cohen and his Research Driven Investor newsletter (no compensation has been disclosed) and Stock Palooza (who pocketed $16 thousand for their efforts) and we can definitely say that they were not having an easy time of it. The first emails started hitting our inbox back in Wednesday and back then they really didn’t have all that much to talk about. As we mentioned the filings are outdated and the PR department seemed to be on a long vacation. The pumpers had to resort to explaining complicated technical indicators that were supposed to push the price up and to quoting press releases that are five months old.

Now though, their job will be a whole lot easier. MULI finally made an announcement today informing us that after some hard negotiations with the State of New Mexico, they have acquired some leases operated by an entity called Robin Hood LLC. These are the same properties that MULI talked about nearly six months ago when they were saying that the wells could potentially yield up to $79 million worth of oil. They were mightily optimistic about the figure back then but they somehow failed to mention that the leases weren’t really a part of their portfolio.

Still, they now have control over the properties, drilling should start soon and it’s only a matter of time until the revenues start 1EHOS.pngrushing in, right? Well, we don’t know. The press release does say that the leases have been transferred to MULI, but it doesn’t give us any information on the start of the exploration process. One thing is for sure: pumping oil out of the ground might prove to be very expensive and because of their reluctance to file their reports, we have absolutely no idea if they have the required financial stability to sustain any sort of operations.

In the meantime, the pumpers are carrying on with their task of 75PLPL.pngtouting the ticker with more and more emails coming in as we speak. Having in mind the previous performance, they will probably wreak havoc with the price in the very near future, which is why, careful consideration of all the risks is absolutely essential when contemplating a potential investment. The people who didn’t think about the dangers during David Cohen’s previous pumps (Ehouse Global, Inc. f/k/a Veterans In Packaging Inc (OTCBB:EHOS) and Plandai Biotechnology Inc (OTCMKTS:PLPL) got seriously burnt and we’ve even got the charts to prove it.

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