Syndication, Inc. (OTCMKTS:SYNJ) Pops Up Thanks to a Pump

Being a penny stock promoter is not easy in this day and age. The regulators are keeping a closer eye on the OTC than they used to which means that you’re always in danger of being caught doing something you’re not supposed to be doing. Investors, on the other hand, are more weary of what they base their investment decision on which makes the job all the more difficult. Yet, there are outfits that still have what it takes to influence the way a certain penny stock behaves. Damn Good Penny Picks is one of those outfits and yesterday, they informed us that Syndication, Inc. (OTCMKTS:SYNJ) is their new pick.

This was enough for many people to place their money on the line. The first truly active session for SYNJ in a while resulted in a dollar volume of about $96 thousand and price gains of 25% which means that the ticker is about to start today’s session at $0.0005 per share. The disclaimer says that there’s no compensation which means that Damn Good Penny Picks and Damn Good Penny Picks only are responsible for the choice of a company. Let’s see what they’ve chosen.

SYNJ is in the business of developing trading software and straight away we can see that some of its press releases leave a lot to be desired. They all sound extremely optimistic, but they don’t seem to be completely in line with what is actually happening around the company. In some of them, for example, the management team is talking about up-listing the stock to one of the national exchanges which seems somewhat absurd considering the current share price, the fact that SYNJ is not reporting with the SEC, and the latest financial statement which looks like this:

  • cash: $1,260
  • current assets: $5,787
  • current liabilities: $3,482,565
  • NO revenue
  • quarterly net loss: $45,002

It must be said, however, that these numbers cover the second quarter of the year and some things have happened since then that could change the future statements for the better. At the end of Q3, the company started the sales program for the newly developed ARCHER platform and Brian Sorrentino, SYNJ‘s CEO, took the time to write a special update with which he told us that based on initial results, he expects to see a much different revenue picture during the upcoming quarters.

What he didn’t say was how much convertible debt the company has outstanding at the moment and what the conversion features are. That is somewhat important because the stock has been put through quite a lot of dilution lately.

On February 23, SYNJ effected a massive 1 for 500 reverse split which decreased the O/S count significantly. On the very next day, however, Mr. Sorrentino received 5,000,000,000 shares as a conversion of $80,000 worth of debt owed to him. Subsequently, he said that some of these shares will be canceled.

Some unrelated parties, however, have shown no interest in returning their stock back to the treasury. The unrelated parties in question received a grand total of 710,100,000 shares as a conversion of debt between March 18 and April 2. Unfortunately, neither Mr. Sorrentino’s shareholder update, nor the financial report tell us what the conversion rate was.

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