Rainbow International, Corp. (OTCMKTS:RNBI) Hovers at the Peak of Promotion
Rainbow International, Corp. (OTCMKTS:RNBI) is showing an unusual activity in the past few days, first crashing by 10 cents, then recovering on record buying levels. RNBI grew by more than 26% to $0.23 on Thursday, as dollar volumes reached above $989,000. The curious thing is that Awesome Penny Stocks., our old pumper acquaintance, is back again through its partner, PennyStocks.com. 
What is even more surprising is that RNBI is rising instead of crashing to nothing, meaning the pump has caught on, at least for a couple of days. Of course, we expect an even deeper crash, but for now, the 23-cent price has a long way to go if the enthusiasm keeps for a while. But a pump was not enough for RNBI: the key to the success was the announcement that the company would take up legal cannabis as its new business model.
If fundamentals may be of help given this situation, here is the latest 10-Q summary for the company:
- current assets: $47
- current liabilities: $82 thousand
- no revenue since inception
- quarterly net loss: $4 thousand
So far, RNBI seems confident enough that it is not issuing fresh PR, the latest message landing on April 23rd. Pumpers are happy to take up the task of generating noise, with the latest email landing on May 15th, from the same pumper. The compensation for the campaign is $250,000, and the messages may linger for a while, at that relatively high price. RNBI is a strange exception in that it needs a specialized promotion. A few months ago, only a couple of PR messages could cause the same effect for marijuana stocks.
But even if RNBI goes on to crash, this would be a positive scenario. We still don’t know if the SEC is done with the suspension measures for stocks making unusual moves. One of the latest tickers to fall out of trading was CannaBusiness Group, Inc. (OTCMKTS:CBGI). CBGI is still not trading, but we expect it to crash as soon as trading resumes. CBGI made a wild swing upward, peaking at $0.40, only to move down toward $0.046, where it awaits its fate now.
Integrated Cannabis Solutions, Inc. (OTCMKTS:IGPK) survived for now, and even had a day of buying at the new, post-crash price. Still, IGPK now stands around $0.10, and for such shaky tickers, even this is a big price, as unsustainable as the peak at above $0.70.
The other blatant pump affected the price of Pingify International, Inc. (OTCMKTS:PGFY). This company also started with a few days in the red, followed by a rather ambitious climbing trend that was only stopped by the SEC intervention. PGFY froze at the unrealistic price level of $0.74 per share.
If pumps are indeed back, that would warrant even more caution compared to just picking up the next newly announced marijuana company. Pumps develop faster, and cause faster and more painful crashes of more than 80%, often even 99% loss. Check the real reasons for a stock’s rise, and plan the size and timing of your investment to minimize losses.
