Georgi Kamburov

3D Pioneer Systems Inc. (OTCBB:DPSM) Makes Another Run Up The Chart

by Georgi Kamburov June 9, 2014
DPSMchart1.png3D Pioneer Systems Inc. (OTCBB:DPSM, DPSM message board) first caught the attention of the market at the start of April. Back then it managed to run from around $0.45 to a peak of nearly 80 cents per share. Unfortunately the impressive run was only possible thanks to a paid pump with a disclosed budget of $475 thousand. 

The promotion began with a landing page created by Future Money Trends but a couple of pump newsletters were soon brought in in order to build even more artificial hype. The last email alert came on April 24 but by then DPSM had already wiped more than half of its recent gains. In the aftermath of the campaign DPSM fell below the starting price of the pump and dropped down to nearly $0.425. 

Last week though DPSM made a significant recovery after it surged up the chart for three days in a row. On Friday the stock added more than 16% to its value and closed the week at $0.63. The jump happened on increased attention from the market as investors managed to shift close to 1 million shares resulting in a dollar volume of $600 thousand. The problem is that nothing material around the company has changed in order to warrant such a sudden reversal of the stock's movement.
DPSM is as riddled with red flags as ever. According to the latest financial report at the end of January the company was in a rather depressing state:
  • $17 thousand cash and total assets
  • $104 thousand total liabilities
  • ZERO revenues 
  • $57 thousand net loss
On February 3 DPSM entered into a financing agreement for a total of $500 thousand with the last payment of $180 thousand received by the end of March. Just for that last sum DPSM issued more than half a million shares priced at $0.33, representing a discount of 25%. But investors have to keep in mind that there are even cheaper shares ready to hit the market. Last year 44 million shares (after the 16-for-1 forwards split performed in October, 2013) were sold for proceeds of just $27 500, or $0.000625 for each share.

Investors on message boards claim to have received a hard mailer touting the company which may mean that the promotion for the company is starting once again. It is important to realize that DPSM should be regarded solely as a pump play. Do your 5AEGYchart.pngown due diligence and take into account all the possible risks before committing to any trades involving the stock. 

On Friday the marijuana industry took yet another hit after the SEC suspended Alternative Energy Partners Inc (OTCBB:AEGY) and SK3 Group Inc (OTCMKTS:SKTO). Both companies were surrounded by red flags but investors were stilled excited by the planned merger between them. We will see if the companies will continue with merger now that they both got suspended.

Comments 0

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