The Excitement Around EMS Find Inc (OTCMKTS:EMSF) Didn’t Last

On Tuesday EMS Find Inc. (OTCMKTS:EMSF) published a new PR in which the company announced that it has signed a Letter of Intent for the acquire Page Out, an interactive platform designed to streamline the emergency response process and provides management with real time status. The news had an immediate effect – on that day the stock surged nearly 30% up and closed at $1.50 per share, putting an end to its depressing slide of 7 consecutive sessions in the red.

Unfortunately the positive momentum that was generated by the PR appears to have disappeared almost equally as quickly and yesterday EMSF returned to crashing. The stock dropped by 16% and returned to $1.26 per share while the daily volume nearly doubled the 30-day average of 207 thousand shares. Investors’ reluctance to put their money in the company could be explained by the myriad of red flags that surround EMSF.

On June 9 the ticker climbed to a high of $2.53, share price that is more than impressive for a company that was formed just a couple of months ago through a merger. The problem is that the only reason for the stock to reach such price ranges was a paid pump carried out by the pump outfit The Moskowitz Report. A landing page touting EMSF has been set up but more importantly with a disclosed budget of $1.2 million the pump included the distribution of hard mailers. The pump is still ongoing with investors still receiving the glossy brochures in their mails.

When dealing with a pumped pennystock you must always ask yourselves the question – Who stands to gain the most from the artificially increased awareness? In EMSF’s case that must be the people who bought 3,650,000 shares for $36,500. Thanks to the 5-for-1 forward stock split performed last December those people now owned over 18 million shares with a split-adjust price of just $0.002. At the moment, even after the recent loss in valuation, EMSF are still trading at $1.26 per share.

Even without the risks associated with the pump the company remains extremely dangerous. In their PR from May 27 EMSF stated that the financials of EMS Factory Inc, one of the companies that were part of the merger, were going to be disclosed in an 8-K form by the middle of June. Well, we are now rapidly approaching the end of the month and there is no sign of the 8-K filing.

This is not the first time the company has been having troubles with its deadlines. As we’ve said in our previous articles the planned beta testing for their mobile application was supposed to start in early 2015 but was subsequently changed.

So, with no information about EMS Factory’s resources let’s take a look at the other company that was previously known as Lightcollar Inc. According to their latest quarterly report at the end of December 2014 they had:

• ZERO assets
• $90 thousand liabilities
• ZERO revenues
• $11 thousand net loss

We will leave it up to you to decide whether numbers such as these could justify the present market cap of EMSF of over $35 million. 

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