EMS Find Inc (OTCMKTS:EMSF) Plummets Again

EMS Find Inc (OTCMKTS:EMSF), in case you haven’t heard already, is targeted by a rather big promotional campaign. The budget is massive – $1.2 million and Mr. Charles Moskowitz is responsible for the touting which is done through hard mailers and a landing page. Those of you who have seen enough large-scale pumps know that these sort of campaigns usually last for a while and that the stocks go through several peaks and crashes. EMSF is a classic case in point.

The pump started at the beginning of June and several sessions of heavy buying saw the ticker smash through the $2 barrier. Then, it all went to pieces when EMSF wiped out half of its value in a matter of less than two weeks.

It then moved sideways for a while but a couple of weeks ago, it started shuffling again. A few sessions of moderate volume brought it back to $1.50, but, in typical pumped penny stock fashion, it stalled without warning yesterday and it wiped out more than a fifth of its value, finishing the day at $1.17 per share.

All in all, nothing out of the ordinary. EMSF is being pumped for $1.2 million and its behavior is unpredictable and violent. If the pump continues, we might see some more wild swings, but we’re not really that interested in this.

We’re wondering what will happen once the pumpers are done with EMSF. Most of promoted OTC tickers sink into oblivion once they emerge on the other end of a paid promotion, but can EMSF break the mold?

Quite frankly, things are not looking good. We’ve been covering the company since the very first days of the pump and we’ve mentioned numerous times that trusting the management team might not be the easiest thing in the world. Steve Rubakh EMSF‘s CEO, for example, was once trying to make the shareholders of Power Sports Factory happy, but instead, he made some other people upset. The whole thing ended in a lawsuit which eventually led to Power Sports’ demise.

That, of course, was a rather long time ago, but it does raise some questions around Mr. Rubakh’s managerial skills. These questions, by the way, were bolded by a seemingly small detail in the latest annual report (an amended version of which was filed a week ago).

EMSF‘s fiscal year end is March 31 and this is explicitly stated in the 10-K. Yet, the figures in it are labeled “As of December 31, 2014”. The figures in question, by the way, look like this:

  • cash: $168
  • current assets: $7,148
  • current liabilities: $18,278
  • yearly revenues: $264,672
  • yearly net loss: $43,380

The balance sheet is absolutely appalling, but it must be said that the revenues and the net income in particular could make some people believe that there’s a light at the end of the tunnel. And indeed, this could be the case.

The problem is, the light might turn out to be the train driven by the investors who got about 18 million shares for just $36,500. This, as you might imagine, is a problem we’ve been talking about for quite a while.

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