Primco Management Inc (OTCBB:PMCM) Gains 50% On A Colossal Volume
We first wrote about Primco Management Inc (OTCBB:PMCM) on February 8 when they were just entering the lucrative entertainment industry. News of the acquisition of EMSG, Inc. had just come out and traders were finally paying attention to the ticker. There was also a new President and CEO, Mr. David Michery who shortly after taking the helm said that he is going to turn PMCM into a multi-million dollar NASDAQ-listed corporation.
Even back then, we had our doubts about all this (we’ll get to them in a minute), but these words were a perfect starting point for the pumpers. The campaign that was initiated just hours later was rather big considering the fact that until just days ago, PMCM had been nothing more than a real estate venture with virtually no operations at all. Quite a lot of newsletters jumped in from Day One and they all received some rather tasty compensations. In the five and a half months since then we have intercepted more than ninety emails about PMCM from promoters of all shapes and sizes and the results on the share price are absolutely catastrophic – the people who bought in on the initial hype are now holding shares that are more than 96% cheaper.
Looking at the news and documents coming out of PMCM‘s HQ, this seems somewhat illogical since things appear to be moving along. If you take the financial statements for example, you’ll see that PMCM now have some assets and they’re also proud to say that they own some contracts with emerging hip hop artists. In addition to this, they also completed the acquisition of a company that has some more agreements in place, signed a letter of intent for the merger with yet another candidate subsidiary and now boast about partnering with Warner Music Group.
This is all good news, you would agree, and when you have it in mind, you’re probably thinking that Mr. Michery’s words about PMCM becoming a huge success might not be as far fetched as they would normally seem. Not necessarily.
You see, we witnessed a prime example of how the names of big music stars aren’t a guarantee for success. We are of course, talking about Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII). If you have been following our coverage on XUII closely, you will know that they also spoke extensively about some contracts with artists (a lot more famous than the ones PMCM have) and they even organized concerts and other events for them. The only problem is, XUII failed to monetize on the contracts and that, along with the huge pump job means that their stock performance is so catastrophically bad, that Awesome Penny Stocks should be on their way to retirement (if they keep their word, that is). Whether PMCM will manage to do any better remains to be seen from the future financial statements, but as we mentioned in the first paragraph, we’re somewhat skeptical. Here’s why.
When Mr. David Michery took the helm of PMCM, he was presented as a music veteran with years upon years of experience in the industry. Indeed, when you do some research, you’ll see that a person by the same name acted as the producer for one of 90’s most successful R&B hits, Whoomp! (There It Is) by Tag Team. Then again, when he was presented, they didn’t mention his affiliations with other penny stocks. As we already wrote in previous articles, he was once involved with Seven Arts Entertainment Inc (OTCMKTS:SAPX) and if you take a look at the chart on the right, you’ll see that he didn’t really help get SAPX out of the mess. He is also listed as the CEO of yet another penny stock that tried to make an impact on the entertainment industry – United Music&Media (OTCMKTS:UMMG) – a company with 1.6 billion outstanding shares and no official reports since June 2011.
PMCM‘s CFO, Mr. Alan Bailey is also a busy person since we see his name in the current filings of American Community (OTCMKTS:ACYD), Global Entertainment Holdings, Inc. (OTCMKTS:GBHL) and, until recently, in the ones of Mass Hysteria Entertainment Company Inc (OTCMKTS:MHYS). None of these companies turned into the multi-million dollar NASDAQ-listed corporations that Mr. Michery talked about back in February and right now, we’re struggling to see how his newest venture is going to be any different. In fact, the only thing that PMCM have shown us over the last five months or so, is the ability to burn massive holes in the investors’ pockets whenever the paid pumpers start waving their arms about.
Speaking of which, the price jumped by 50% yesterday on record-breaking volume when a press release announced the repayment of Magna Group and Redwood Management’s convertible notes, but you should keep in mind that the settlement was done through the issuance of common stock and that if the new shares were to hit the market, the price will take another tumble.