Todor Pichurov

One Step Vending Corp (OTCMKTS:KOSK) Pump is Stillborn

by Todor Pichurov November 16, 2015

It seems last Friday rather a lot of people got burned on yet another stock pump. As usual, they only have themselves to blame, as buying into pumps run by random people is hardly the best investment idea. The stock that afforded them this opportunity was One Step Vending Corp (OTCMKTS:KOSK, KOSK message board). By the closing bell on Friday KOSK was 26% in the red, having dropped nearly 50% from the high of day level.

A promoter going by the name of “Wolf of Penny Stocks” put up an alert on KOSK Friday morning. The choice to advertise a stock that has been performing abysmally on the charts over the past few months and has put up zero news or new filings since mid-September should have perhaps tipped traders off that there might be an ulterior motive behind this, such as a massive front-loaded portion of shares, ready to be dumped in the hands of eager newcomers, excited by the alert. Then again, the sort of people who read and follow pumpers' advice are not the sort of people who would know this.

If traders had also bothered to have a quick look at KOSK's latest available public filing they would have been greeted by the following enthusiasm-defeating figures:

  • $1 thousand in cash a/o June 2015
  • $644 thousand in liabilities
  • ZERO in revenues for Q1 and Q2 of 2015
  • $38 thousand in net loss for Q1 and Q2 of 2015

The report indicates that KOSK converted 295,000 Class A preferred shares into 29,500,000 common shares at $0.0002 between May and June 2016. Another 68,000,000 shares were issued on Jul 16 in a debt settlement agreement. The shares came at $0.001 a pop. KOSO slid effortlessly from $0.75 down to $0.20 over the past month and a half, which could have also been a bit of a red flag for traders.

The pump served its purpose despite all this and created sufficient interest in the stock which was nearly flatlining in volume for days and days and allowed whichever party had front-loaded tons of shares to dump them in the hands of willing newcomers who thought the gap up at the open would actually escalate to even higher levels.

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