US Energy Initiatives Corporation, Inc. (OTCMKTS:USEI) Active as Stock Psycho Selection

There’s a new double-zero ticker promising to remain hot in the next few days. US Energy Initiatives Corporation, Inc. (OTCMKTS:USEI), a newly promoted pink sheet, stands at $0.006 after losing nearly 30% on Wednesday. The main reason behind the dramatic move is a promotional overload, with a series of pumpers gathering up within a day, causing a quick buy and sell for USEI. The previous similar event is from June 11th, when the price doubled in a day, from $0.001 to $0.002, on low buying volume. USEI0620.png

But the loud, well-paid campaign yesterday was a sign for a lot of investors to shed around 80 million shares, worth more than 873,000 dollars. The next few days may be even more active, as it sometimes happens with promoted double-zero tickers. So far, USEI is nearer to its usual daily trading volumes. RJDG0620.png

With such an underpriced stock, it is almost inessential to speak of the company’s underlying business, which happens to be in hybrid automobile systems. USEI is deregistered and its latest data are from 2011. So far, USEI has provided big swings on the stock market, with no more than 20 million shares per day traded on a free float of more than 500 million shares. This has ensured great volatility over the years, independent of the company’s underlying business.

USEI releases independent reports on well-visited business sites, showing the following financial data:

  • Zero revenuesNNAN0620.png
  • $57,000 quarterly net loss
  • $95,000 cash
  • $665,000 total current assets
  • $1 million total current liabilities

The company, capped a bit above $5 million, hardly shows a long and successful story of producing hybrid engines. USEI claims that in 2013 it would focus more on oil, gas and biofuels through its specialized divisions. All these, however, are future claims and tell little about the possibilities of a very cheap stock to multiply its value, then drop again.

USEI was mentioned in 24 emails this months, for a total promotional budget of $283,000. Among the pumpers were Stock Psycho with paying party Stock Mister, both with a history of risky selections. Micro-Cap Consultants is financing the latest USEI action. Professional pumpers often pick rock-bottom stocks to improve their record by inflating the price easily. The Stock Psycho received the highest compensation, $60,000.

If we look at previous selections for this promoter, we see how RJD Green, Inc. (OTCBB:RJGD) slid down significantly only days after the promotion. NaturaNano, Inc. (OTCMKTS:NNAN) also bears the marks of a promotion, although this double-zero stock did not manage to take off.

We will be tracking USEI for its potential to remain in interest for a few days more, but it is best to do your own research and stay away unless you can afford the risks of an underpriced ticker.

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