Nelly Shishkova

Zamage Digital Art Imaging, Inc. (PINK:ZMGD) Grabbed the Climb Again

by Nelly Shishkova August 25, 2011
After a week of losses, Zamage Digital Art Imaging, Inc. (PINK:ZMGD) grabbed the climb again. Yesterday, the stock gained ZMGD_chart1.png30% on the market, trading over 2 million shares for the day. The reason for the sudden massive trade is typical for ZMGD - promotions and hot news.

Yesterday, Zamage announced that its subsidiary, Paraform Design, has enlisted additional sales representatives to grow its customer base. According to the announcement, the new representatives offer great sales track records, some of them exceeding $1 million.

The six-digit number has certainly inspired investors, however, it was not the only reason for the impressive gain. Again yesterday, the positive news was supported by promotions. ZMGD was promoted by a number of websites which included the stock on their watchlists for today for a compensation of $64.000. In this way, the total compensation for August campaigns reached $123,000 until yesterday.

ZMGD_logo.jpgAs already reported on hotstocked.com, less than ten days ago ZMGD hit another huge gain, due to promotions and news. Though, the up move was shortly broken. Meanwhile, the financial condition of Zamage has not changed at all by now.

The company has neither revenues, nor assets in its balance, while at the same time ZMGD has liabilities and expenses to cover. Also, its net profit and cash flows are negative values, which is really bothering for investors.

Recently, the company announced a new franchise contract, however, there is plenty of time until it brings any profit. And while functioning under a going concern, it seems that Zamage has chosen to rely on promotions and news to pump up its stock price.

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