The Struggle for Attention of Neologic Animation Inc (OTCMKTS:NANI)
We last covered Neologic Animation Inc (OTCMKTS:NANI) on May 17 which was also the last day of their previous pump campaign. Back then the article was about the facts that make them a company which is to undergo another promotional campaign.
This is not just a suggestion now as NANI‘s latest pump started on May 28 and for that day and the next we got a total of 13 pump emails. There was quite a lot of dumping on May 29 when NANI registered a total of 11 million shares traded at a total trade value of $86 thousand.
The people that are paying for the company’s promotional campaign seem to be eager to make a profit and are going with these short term dumping fiascos. The thing is that they are not allowing the price to go up so they can make a bigger profit and this is why we anticipate more pump emails coming in soon touting NANI‘s stock.
This leads us to think that the insiders that know what the company’s actual state is are in a hurry to get rid of what they have while they can still make some profit out of it. After out last article about NANI on May 17 they filed their latest quarterly report (May 20), which covers the perioed ended March 31, 2013. Let’s take a moment to see if their financials have improved since we last wrote about them in the numbers of prime interest from the report.
- cash: $94 thousand
- current liabilities: $230 thousand
- revenue since inception: $0
- net loss: $10 thousand
Nothing has changed, and it still seems like that they are not actually engaged in any projects. You will ask why we say that and the answer is simple. The $10 thousand they have listed as net loss comprise of $6 thousand for general and administrative costs and $4 thousand in interest expenses. While they say they are developing a eLearning software, we don’t actually see any money being sent in direction of development of anything whatsoever.
Let us remind you again that NANI is a failed exploration stage mining company that turned to the eLearning sector. Furthermore we would like to have your attention on another disturbing fact about the company.
In June, 2012 as many as 25 thousand internet users have received an email from a fake LinkedIn email touting the stock of NANI thus trying to raise investor confidence by having such a business network backing them up. As it turned out that is not the case and the email wasn’t really one of LinkedIn’s. The email contained a YouTube video link in which the narrator explains how big NANI can get in the Chinese market in roughly about 7 minutes.
The deal is that they don’t really have any actual business which they can “expand”. We can’t really figure out how someone would think that there are people who would give in to words about expansion when there is literally nothing to expand in the first place.
Most recently their press releases speak of a “strategic partnership” with the Beijing Normal University. The deal is that it only contains that statement and a few words from the CEO of NANI, Dr. Zhang. The other part of the press release is filled with the history of the University and we don’t really see in what the partnership will be expressed.
With all that in mind we advise investors to do their own due diligence and proceed with caution if they have on their mind the idea of investing in NANI‘s risky stock.
