Definitive Mattress Company f/k/a Crescent Hill Capital Corp (OTCMKTS:DRMC) Pushed Up by Pumpers

DRMC.pngThere’s plenty of companies on the OTC Markets that plan on creating and commercializing some sort of ground-breaking products that will turn the world on its head. Definitive Mattress Company f/k/a Crescent Hill Capital Corp (OTCMKTS:DRMC) have taken on a more conventional approach.

They started off back in 2009 as a privately-held mattress manufacturer and their press releases suggest that they have managed to establish a solid customer base. If you take a look at their website (as of the time of writing this article, it doesn’t seem to be finished), you might have some doubts about this claim, but the fact of the matter is, they do have some interesting figures in their latest balance sheet.

Here’s a recap of the company’s results recorded at the end of 2013:

  • cash: $6,129
  • current assets: $12,623
  • current liabilities: $216 thousand
  • yearly revenues: $896 thousand
  • net loss: $57 thousand

The first thing that catches the attention is the revenues which, compared to other small cap enterprises, are not bad at all and the 25% increase in sales that the company has experienced over the reported twelve months. Unfortunately, there are some problems as well.

The cash reserves are extremely limited, there’s no shortage of debt, and the net income registered in 2012 has turned into a net loss. DRMC say in the report that they had problems financing their operations and back in November 2013, they decided that going public can help them weather the difficulties.

They took control over an OTC-listed enterprise called Crescent Hill Capital Corp, changed the name, and officially became a penny stock company. It’s no secret that, generally speaking, public enterprises get more exposure and access to capital is a bit easier. The shareholders can now hope to see DRMC taking advantage of their public status, but while they’re waiting for the next report and some more optimistic figures, they need to carefully consider one thing – the stock is being pumped.

DRMC_logo.pngThe emails started flying around on March 31 and so far, we have received more than fifty (and counting) alerts from a range of newsletters. According to our database, the total budget stands at $541,500 and the best-paid promotional outfit is Stock Publisher who pocketed $400,000.

The campaign didn’t have that much of an effect on the performance at first, but yesterday, DRMC managed to jump up by as much as 37% while racking up a dollar volume of more than $1.4 million. The ticker closed the day at $0.425 per share and we should note that there are people who can make some huge profits at these levels.

Page 5 of the annual report informs us that between March 6 and March 11, DRMC converted $2,150 worth of notes into a whopping 21.5 million common shares. Will the former note holders cling on to their holdings and wait for a brighter future? Or will they decide to cash in on the current price and unleash the discounted stock on the open market? We’ll leave it up to you to decide.

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