There’s a Lot of Commotion Around MASSIVE DYNAMICS (PINK:MSSD)
You know that something is brewing when you see that a small cap company has been making announcements every couple of days for the last month or so. That’s what MASSIVE DYNAMICS (PINK:MSSD) have done and when we received the email SuperHotPennyStocks we knew for sure that the PR frenzy won’t go unnoticed. But does all the excitement really deserve your attention?
MSSD are a company that deals in the consumer electronics and they say that they produce accessories for smartphones, tablets and personal computers. They started off back in 2011 and after being in the business of long-distance wireless technology for some time, they turned their attention to bigger capacity batteries for mobile phones and gadgets that will let you use two phone lines on a single device. Now, they say that they will be leading mankind’s technological progress by developing one of the hottest technologies around – 3D printing. We have some doubts that they will be at the forefront the revolution, though.
In their email, SuperHotPennyStocks explain in details about the expertise of MSSD‘s CEO, Mr. Oscar Hines and they even compare his company to leaders this business like 3D Systems Corporation (NYSE:DDD). But can MSSD really compete with them?
In a word, no and MSSD will need to raise quite a lot of money if they want to be considered anything more than a dwarf in the land of giants. Here’s what they had as of December 31, 2012:
- cash: $28 thousand
- current assets: $174 thousand
- current liabilities: $266 thousand
- revenue since inception: $5,000
- net loss since inception: $132 thousand
And while their latest 10-Q states that they have secured a line of credit for up to $500 thousand, we doubt that this will be enough. To put things into perspective, you should consider the fact that 3D Systems Corporation spent a whopping $7.8 million on research and development alone during the last quarter of 2012. That, however, is not the only cause for doubts around MSSD‘s success.
While the pumpers are keen to explain in details about the long and prosperous career of Mr. Hines, they somehow forget to mention who actually owns the majority of MSSD shares. We however, were able to find that out for ourselves. According to this 8-K form, it’s a business entity called Kylemore Corp. We always strive to do as thorough a research as possible and a simple Google search on Kylemore was the logical way to go. While they have no website or, in fact, any way to locate them, we managed to connect Kylemore to another penny stock venture – Chimera Energy Corp (PINK:CHMR). CHMR were incorporated at roughly the same time as MSSD, they too have a sole officer who deals with all the company business, they were financed by Kylemore since the very beginning, and, as we wrote in an article back in October, there was a heavy promotional effort for them both through optimistic announcements and through newsletters. Shortly afterwords CHMR‘s shares were suspended by the SEC due to doubts about the legitimacy of the information contained in the press-releases.
What does that have to do with MSSD? Well, apart from the Kylemore connection, which is frightening enough, the majority of press-releases that have been coming out of MSSD‘s HQ sound rather dubious. On March 18, for example, they stated that they will be a part of an international exhibition in China called “The Annual China Machinery Fair in Xi’an”. Try as we might, there is absolutely no information on the event apart from, of course, MSSD‘s press-releases. They have supposedly been represented at the exhibition by one of their subsidiaries – PrintForge 3D Ltd and, once again, although we went all the way through to page 6 on Google, all we could find was links to MSSD‘s announcements.
While all the similarities between CHMR and MSSD might be simply a series of unfortunate coincidences, we reckon, that there’s far too many of them. The fact that newsletters like SuperHotPennyStocks are also trying to create some hype around MSSD means that the risks are even higher. That’s why we would advise you to conduct a thorough research on the company and the people behind the ticker before jumping in on the excitement.