Paid Promotion for Deltathree, Inc. (OTCMKTS:DDDC) Draws Investor Interest
The stock of Deltathree, Inc. (OTCMKTS:DDDC) is in a process of what one might call revival. After a promotional campaign was initiated their stock livened up, started trading in higher and higher volumes and the price per share jumped a whopping 833% in just 2 trade sessions.
After a long period of no percentile movement DDDC‘s stock finally “woke up” on July 12 when a massive pump campaign was initiated before the market opened. The pump emails that were distributed by Market365, LLC have listed that they have not been compensated in any way for the distribution of the promotional emails and many of the other pumpers don’t even mention anything about compensation in their disclaimers.
Compensated or not, their emails generated a huge interest in DDDC‘s stock, which skyrocketed 277% up the charts on a massive volume of 2.6 million shares. Compared to their average of 93 thousand thats quite a number and it becomes even more shocking when you see that 4 out of six of their previous trade sessions ended with less than 1000 traded shares. The trade value that the stock generated while going from $0.025 to $0.068 came at $145 thousand, which isn’t that much and this is probably the reason why it didn’t come up on our radar for hot stocks.
Yesterday’s session, however, begs to differ as the stock is getting even higher crossing the 10 cent barrier with a further 120% up on even bigger volumes of a little over 4 million shares that switched hands. Even though the heaviest dumping was done in the morning that didn’t prevent the stock from going up and it had reached the day’s high of $0.17 just 50 minutes into the session. Things quieted down and the price continued to move through the charts with no significant movements, with DDDC‘s stock closing the day at $0.15 and a healthy $500 thousand trade value.
However, what does the company have to back up its $10 million market cap. Well, we checked their financials and the situation seems to be O.K. for an OTC Markets company, but not that rosy compared to profitable businesses. We have listed the numbers of prime interest from their financial report covering Q1 or your consideration below.
- cash: $168 thousand
- total assets: $1.4 million
- current liabilities: $4.2 million
- total liabilities: $7.4 million
- revenue: $3.7 million
- net loss: $356 thousand
The light in the tunnel is the big revenue that they are making, however, at what cost. Only the cost of of the services they are providing makes up 72% from the revenue and when you add other spendings like research and development, selling and marketing and of course general and administrative expenses it becomes evident that with its current business model the company is hardly going to be profitable. When you also add the huge amount of liabilities, the situation starts to look grim, so be sure to do you due diligence before you decide to jump on their train just because some pumper told you to.
After all let’s not forget what happens to pumped tickers with a fresh example from Primco Management Inc (OTCBB:PMCM) who were targeted by PennyStockCrowd.com in an attempt to wash their hands from previous failed pump jobs. Guess what. They failed even more as PMCM‘s stock dropped 46% the same day after they were 577% up from the previous trade session and the stock dropped to double zero prices again.
Also, do keep in mind that the most recent addition to the pumpers bandwagon are Penny Dreamers, who touted the stock of VizStar Inc (OTCMKTS:VIZS) on June 18. The chart to the right speaks for itself.
