UMining Resources, Inc. (OTCMKTS:UMNG) Spasms on Pump
In Friday’s session the stock price of UMining Resources, Inc. (OTCMKTS:UMNG) danced all over the charts and finally settled 58% up at $0.002 per share. The company moved a share volume disproportional to its average, with 208 million shares changing hands over the day. The only traceable reason for the movement was a stock pump.
Money Runners, a stock promoter outfit, dished out an email alert targeting UMNG right at the opening bell. The disclosure portion of the pump listed no compensation but informed that Money Runners will be buying and selling shares as it sees fit over the course of the day. Emphasis should perhaps be put on ‘day’, singular, indicating just how long Money Runners believe the price will run.
Apart from the pump, there’s no detectable reason for UMNG‘s movement. The company had not posted any new filings or press announcements prior to the jump and its latest quarterly report is rather dreary. Here is what UMNG reported as of February 2014:
- ZERO in cash and current assets
- $1 thousand in current liabilities
- ZERO in quarterly revenues
- $21 thousand in quarterly net loss
For those wondering whether UMNG is going through a difficult quarter with no revenues, a quick reference will show that the company had zero revenues in all of 2012 and 2013 as well. According to the company’s filings, UMNG expects to fix this by getting into the ‘cultural industries’. Those plans involve steps into the TV markets, streaming live shows and other content delivered over the internet. All fine endeavors, if one has the financial resources to invest in them. At the moment, UMNG doesn’t appear to have any such resources, with no current assets on its books and no revenues generated over the last three years.
Pumpers Money Runners probably managed to squeeze the intra-day move nicely. UMNG burst up right out of the gates, so traders getting in after the alert had little chance to even play the pump. Those who bought at the high of day and held are now looking at a loss of 55%. Trying to play random, volatile pumps is never a good idea, especially when the promoter’s track record is as dismal as that of Money Runners.
The same outfit last pumped S2C Global Systems, Inc. (OTCMKTS:SWTG) on May 8. SWTG is currently about 40% down from the spike charted on the day of the pump. Investors should never skip doing their own research and never trade on a random recommendation someone dropped in their inbox.