Georgi Kamburov

3D Pioneer Systems Inc. (OTCBB:DPSM) Drops Despite Pump

by Georgi Kamburov June 10, 2014
DPSMchart2.pngAfter posting a gain of 16% and closing at $0.63 right before the weekend 3D Pioneer Systems Inc. (OTCBB:DPSM, DPSM message board) tried to keep the positive momentum going and issued a PR article at the start of yesterday's session. In it the company announced the rather encouraging news that they are almost ready to launch their 3d printing service. Through the website DPSM are going to match or beat any other quote for a 3d printing job. 

The PR created enough excitement and the stock opened with a gap up at $0.649 but started losing positions almost immediately. At the end of the day DPSM had lost nearly 7% returning back to $0.586. Investors seemed quite eager to cash in their holdings resulting in more than a million shares changing hands throughout the day. 

Even after the correction DPSM still commands an overly-inflated market cap of $44 million. At the same time the company reported extremely depressing financial results for the first quarter of the year:

• $17 thousand cash and total assets
• $104 thousand total liabilities
• ZERO revenues
• $57 thousand net loss

With such poor financial health it is important to realize that the only reason for the positive performance of the stock was the artificial hype created by a paid pump. The promotion first began at the start of April with a landing page and quite a few email touts sent by various newsletters. 

The disclosed budget for the whole campaign amounted to $475 thousand. Initially the pump boosted the stock to a high of 80 cents but then DPSM started crashing and wiped more than 50% of its value even dropping below the starting price of the pump of $0.45. Last week's run performed by the stock was also supported by the distribution of a hard mailer touting the company.
Most likely, the people standing behind the pump are the owners of millions of extremely cheap free trading shares. Last year the company sold 2,75 million shares for proceeds of just $27 500. This means that each share was priced at $0.001 but the 16-for-1 forward stock split performed in October turned that number into 44 million shares priced at $0.000625. Thanks to the increased attention towards the stock created by the paid pump these people stand to gain millions at the current market price. 

22TRTCchart.pngEarly in the morning today a SeekingAlpha article about DPSM was published and in it the author discussed much of the same red flags around the company. The article will undoubtedly increase the volatility of the stock even further. 

Yesterday the stock of Terra Tech Corp. (OTCMKTS:TRTC) continued to wipe more of its price dropping down by another 15% and closing at $0.426. The company failed to acquire a permit for a medical marijuana dispensary and it may suffer even harsher corrections. Growblox Sciences Inc. (OTCMKTS:GBLX) on the other hand received their permit and managed to stop their slide. The company finished yesterday's session 3.75% in the green at $1.66 per share.

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