Green Innovations Ltd. (OTC:GNIN
, GNIN message board
) has been one of the most popular and most active stocks on the OTC in the last month or so. There is a lot of controversy around the company and it being pumped.
Yesterday GNIN closed up 25.81% at $1.56 per share on approximately 5.6 million shares. The stock is more than 100% up since Feb. 26, but still about 40% down from the previous pump high.
The company has been issuing a lot of fluff press releases, but yesterday the only press release was supposedly an update about a 24% stock dividend, which had been previously announced. It wasn't really much of an update, with virtually no new information other than that fractional entitlements will be rounded up to the nearest whole share.
It's also not quite clear why a company so young would go for a dividend, but the market seems to like the idea. The dividend will apply to common stock shareholder of record at Feb. 19.
A lot of the controversy around GNIN stems from the fact that the company's stock is touted by paid promoters. Investors Alliance, Dividend Seeker, National Traders Association, and Traders Insight are some of the newsletters used in the GNIN pump.
Additionally, the history of GNIN shows troubling similarities to other pump jobs. The company used to be a shell, then it became operational through a reverse merger. There was a forward stock split before the stock had started active trading, which increases the shares of insiders and seed shareholders. You can get a more detailed look on those and other red flags in a previous article on GNIN, GNIN message board.
The company has filed exhibits to prove it has generated some revenues, but until a financial report, which shows results from operations, is filed with the SEC, making an objective valuation of GNIN will be impossible. Right now GNIN is trading on partial information, and this can have disastrous consequences.