UPDATE: In roughly 24 hours, this stock has tanked 50%+ and subscribers of my 4 newsletters have cleaned up on our shorts…and yes those who read this post got to witness a pump turn into a dump in real-time…detailed post coming, but thank God for SureTrader for having shares to short!
UPDATE 2: The stock has fallen even more and my trading challenge students and I have profited $65,000+, please read this blog post for all the details
As I posted yesterday, I’m chilling in a rather exotic place for the next week and I’m gonna be doing an awesome LiveStock HERE (password: SUBSCRIBERSONLY) this Friday 8-9PM EST so you can see a small glimpse of it all.
Here’s a picture to tease you.
But as my trading challenge students know and as I’ve posted HERE and HERE, I can work and bank from anywhere so I was glad to see the penny stock pump and dump world is as well as ever.
This morning I already locked in profits of nearly $6,000 shorting this blatant pump Domark International Inc (NDA) (DOMK), which has tripled in marketcap the past few days to be worth over $160 million, for nearly 70 cents/share before 10am EST and now have re-shorted more thanks to SureTrader having shares to short.
The stock is up due to hype surrounding their iPad solar accessory, only problem is a little known SEC filing shows they paid a mere $10,000 for the license to this product and yes thanks to a few press releases and a hunger for all things AAPL, the marketcap has risen by $100+ million.
But the research gets uglyyyyy.
Despite this company having just under $6,000 in cash (yes, my trading profits on the stock today are more than the cash they have on hand), no revenue whatsoever, $800,000/quarter in losses, they have decided to issue 500,000 shares to “retain highly qualified and experienced directors, employees and consultants and to give such directors, employees and consultants a continued proprietary interest in the success of the Company”.
Fair enough, right?
Only problem is they only have one employee as you can see on their profile.
And that one employee Michael Franklin just happens to have been a top executive at SEC-busted EVSO which I posted the details of HERE.
EVSO : SEC Suspension June 7, 2011
“Evolution Solar Corporation is a Colorado corporation based in Arizona. Questions have arisen concerning the adequacy and accuracy of the company’s website and press releases concerning the company’s operations and revenues.”
Hmmmmm, shouldn’t they be raising captial before issuing stock to their one employee with a checkered past?
After all, their SEC filing from 2 weeks ago said:
Operating requirements have been funded primarily through financing facilities, sales of our common stock and loans from shareholders. Currently the Company’s cash flows do not adequately support the operating expenses of the Company. We received $0 during the nine months ended February 29, 2012 from the sale of our common stock and $0 for the nine months ended February 28, 2011. The Company will continue to require financing from loans and notes payable until such time our business has generated income sufficient to carry our operating costs.
…and somehow despite their iPad accessory subsidiary being theirs for over a month, their business summary said:
After the sale of ECFO on October 20, 2009, the Company no longer had any operating subsidiaries until May 31, 2011 when the Company formed a wholly owned subsidiary, Armada Sports. The Company is considered a development stage company. Our future revenue plan is dependent on our ability to effectively close new viable acquisitions and the successful production of the golf events planned in 2012 through our wholly owned subsidiary, The Golf Championships, Inc., (fka Armada Sports & Entertainment, Inc).
Ever since they went into the iPad accessory business less than 60 days ago — as denoted by this press release — they have issued 20 more press releases linked to AAPL’s ticker…look for yourself
Hmmmm…wait a minute, didn’t Michael Franklin’s previous company get suspended by the SEC “concerning the adequacy and accuracy of the company’s website and press releases”
Color me cynical but when DOMK issues dozens of press releases within a few days of each other like this entitled “DOMK: High AAPL iPad Sales Could Signal even Greater Success for new Solapad Product” and “DOMK: Hot Solacase AAPL iPhone Accessory Sales Exceeding Management Expectations” just a few days earlier when this company has ZERO REVENUES AND LESS THAN $6,000 IN CASH, well, methinks the SEC should step in here too “concerning the adequacy and accuracy of the company’s website and press releases” especially given Michael Franklin’s past company shenanigans and the fact that he’s basically issuing 500,000 shares to himself (currently worth a cool $2.2 million at press-release pumped up prices)
What’s funnier is their headquarters, 254 S Ronald Reagan Blvd, Ste. 134 Longwood, FL 32750, as stated in their most recent SEC filing a week ago…a Florida strip mall with an accountant, an insurance salesman and a chiropractor…you know, the typical neighbors of a hot technology company 
Subscribers of my 4 newsletters know what I expect this stock to do.
I am short thanks to my favorite broker SureTrader having shares to short (hint, hint, told you so!), so you outsiders look at this chart and get ready to witness this pump dump in real-time over the next few days.
Posted in Basics, Penny Stock Headquarters
