Borislav Tonev

3D Pioneer Systems Inc (OTCBB:DPSM) Appears on the Radar

by Borislav Tonev April 3, 2014
DPSM.gifAfter a couple of months of very little in terms of price movement and negligible volumes, 3D Pioneer Systems Inc (OTCBB:DPSM, DPSM message board) finally registered an interesting session yesterday. More than 1.9 million shares changed hands in just six and a half hours resulting in a trade value of around $1 million. The ticker closed the session at $0.55 per share which, according to the company profile on the OTC Markets, results in a market cap of nearly $42 million.

It's quite clear that there's a lot of money on the line and some people are expecting the stock to continue going up. But will that happen?

The business plan certainly sounds interesting. DPSM is working in the exciting 3D printing industry, but they also want to develop mobile games and software solutions. The press releases coming out of the company headquarters also sound positive. If you dig a little bit deeper, however, you'll spot one or two problems.

DPSM went through some restructuring back in October 2013. The name was changed and there was a sixteen-for-one stock split. A person called Alexandros Tsingos bought 2,002,000 pre-split (32,032,000 post-split) shares from the former officers for $20 thousand and became the CEO. The company website would have you believe that Mr. Tsingos brings in quite a lot of experience, but we reckon that checking his past before trusting him with your money might not be a bad call.

He was at the helm of a penny stock called New America Energy Corp (OTCMKTS:NECA) between February 2012 and May 2013 and it's fair to say that the company didn't exactly flourish during his stint. In fact, their latest report shows that as of May 31, 2013, they had just $62 in total assets. Not surprisingly, the stock performance has left a lot to be desired as well.

Now Mr. Tsingos is trying to turn DPSM into a serious contender in a fiercely competitive industry, but, considering the figures found in the latest 10-Q, he might have a tall order to fill. Here's what the company had as of January 31:

  • total assets: $17 thousand
  • total liabilities: $27 thousand
  • no revenue since inception
  • quarterly net loss: $57 thousand

And while we're on the subject of the latest 10-Q, let's take a look at what it gives us in terms of share structure information. According to the report, there were around 76 million shares issued and outstanding on March 13. We already mentioned that Mr. Tsingos holds 32 million and if he wants to get rid of them on the open market, he'll need to file the necessary reports with the SEC.

The question is: "Who owns the other 44 million shares?". The answer lies in the 10-Q itself. Page 9 of the report informs us that during the year ended July 31, 2013, some unaffiliated investors received 44 million shares in exchange for just $27,500.

Will they hold onto their holdings and hope for a bright future? Or will they take advantage of the massive profit opportunity currently presented? We'll leave it up to you to decide.

75MDDD.pngIn many ways, DPSM looks like a carbon copy of Makism 3D Corp (OTCMKTS:MDDD). Both companies are working in the 3D printing business, both are based in the United Kingdom, and both have some serious financial problems. In case you haven't heard, MDDD became the target of a $2.75 million pump at the end of 2013. On December 13, the SEC decided to suspend the ticker and it was transferred to the Grey Market. Miraculously, MDDD managed to bring the stock back on the OTCBB tier, but unfortunately, it has now become the target of another promotion.

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