Borislav Tonev

Joymain International Development Gp Inc (OTCBB:JIDG) Perks Up Again

by Borislav Tonev May 7, 2015

Joymain International Development Gp Inc (OTCBB:JIDG, JIDG message board) isn't the most consistent stock out there. A couple of weeks ago, it suddenly attracted the attention of investors and it managed to run from $0.25 all the way to $0.70 per share in a matter of just a few sessions. Sadly, it then crumbled back down and just two days later, it found itself at less than $0.40 again. It has managed to make a rather remarkable recovery, though.

Yesterday, JIDG logged its fifth consecutive green session and after a 19% leap, it closed the day at $0.86 per share. It also racked up a dollar volume of over $300 thousand which is quite an achievement for a stock that had some serious liquidity problems not that long ago.

So, despite its hesitance, JIDG does appear to be performing much better than the majority of its OTC counterparts, and it has already provided a few people with the chance to cash in on some rather significant profits. But does this mean that you should throw your money at it and wait for it to grow?

It must be said that the reasons for the impressive jumps towards the higher end of the charts are hard to find. The same, by the way, can be said about the terrible drop from last week. There has been no news that could warrant the wild swings and the latest 10-Q came out more than a month ago.

Speaking of which, the report for the period ended January 31 will probably leave you with some mixed feelings. Here are the figures:

  • cash: $734 thousand
  • current assets: $1.2 million
  • current liabilities: $94 thousand
  • quarterly revenues: $1.3 million
  • quarterly net loss: $13 million

It must be said that this was the first quarter of revenue generation for JIDG and in light of this, the sales figure doesn't look bad at all. It seems that the decision to start selling Yolexury products has been a good one. In addition to this, there is some cash in the bank and there's no significant debt worth worrying about.

You have to agree, however, that the losses are absolutely petrifying. And you have to think about whether JIDG really deserves its market cap which, at yesterday's close, sits at a mind-numbing $963 million.

Other people will probably be pondering upon the same question and if they decide that JIDG is not worth close to $1 billion, they might be tempted to unleash their stock on the open market. As we mentioned in our previous article, at the end of last month, JIDG filed an S-1 registration statement which relates to the resale of more than 50 million shares, most of which were acquired at a price of just $0.03 a pop. The SEC declared the statement effective on April 27.

As we also mentioned in our previous article, in March and April 2012, the company sold 515,000 shares at a price of $0.05 per share. There was a 300 for 1 forward split in 2013 which turned the 515,000 shares into 154,500,000 shares.

Make sure you bear this in mind before reaching for your wallet.

Comments 0

Type the characters that you see in the box (5 characters).