Makism 3D Corp (OTCBB:MDDD
, MDDD message board
)'s stock performance has been truly amazing over the last couple of days. As you probably know, the company received a Caveat Emptor badge on its profile at the OTC Markets a week ago, and although it dropped by no less than 40% a few hours later, it has managed to recover over the following sessions.
What's more, the volumes suggest that interest in the company is stronger than ever. Yesterday, just six and a half hours of intense trading were enough for the ticker to shift more than 7.9 million shares which results in a dollar volume of around $9.68 million. The share price skyrocketed by a staggering 47% and finished the session at $1.28 after briefly hitting an intraday high of $1.60. The question on everyone's mind is: "How long will the upward trend continue?".
If you have been following our articles closely, you probably know that we're not particularly optimistic.
The skulls and crossbones designation wasn't put on the company profile at the OTC Markets just for the fun of it. It was done because MDDD is the target of a $2.75 million promotion and it would appear that over the last couple of days, it has also involved a hard mailer brochure. With the help of a diligent investor we managed to find a scanned copy of the flyer today which you can review from this link.
If you've been around penny stock promotions for long enough, you know that the end results of such campaigns (regardless of the budget) are pretty much identical - quite a lot of broken dreams and disappointed investors. The reason for this is, of course, the fact that third parties are paying the pumpers to tout stocks and they always want to get some of their investments back.
MDDD experienced some heavy drops last week, but, as we already mentioned, it has managed to recover. Early trading today suggests that another slide is in store. Just half an hour after the opening bell, the ticker is already standing at around $0.92 which is a whopping 28% below yesterday's close. There's still quite a lot of time for a recovery, but we reckon that this time, it's going to be a bit more difficult.
About an hour before the start of the session a trader who calls himself Penny Stock Realist and claims that he has a short position in MDDD wrote an article on Seeking Alpha in which he says that, in his views, MDDD is absolutely worthless. You can have a look through his arguments and decide for yourself if they are founded or not, but it's clear that, at the moment at least, they are helping push the price down. Are we surprised? Not in the least. In fact, this isn't Penny Stock Realist's first article and, looking through his track record, we can see that traders are ready to believe him.
On November 13, for example, he covered Endeavor IP Inc (OTCBB:ENIP) which resulted in around 40% in losses after just two sessions. On November 22, his views on Life Stem Genetics Inc (OTCMKTS:LIFS) got published and resulted in 55% lost in a single day. Shortly before the next session, LIFS got suspended by the SEC. Fresh Healthy Vending International Inc (OTCBB:VEND) was also covered by Penny Stock Realist on November 27 and it managed to drop by around 28% after just six and a half hours of trading.
Some people blame the Seeking Alpha contributor for pushing the price down so that he can benefit from his short position, but whatever his motives are, he is certainly right about one thing: MDDD is a promoted company and an extremely risky stock. Make sure you tread carefully, do a lot of due diligence, and consider all the risks before making any decisions.