Georgi Kamburov

Metatron Inc (OTCMKTS:MRNJ) Gets Pumped, Crashes Horribly

by Georgi Kamburov December 9, 2015

Just this June Metatron Inc (OTCMKTS:MRNJ, MRNJ message board) performed a massive 1-for-10000 reverse split. As a result the company was left with a total of 61,809 outstanding shares, 54,305 of which freely tradable. The reverse split pushed the price of the company's stock to several dollars per share.

By the end of September however there were now more than 450 million outstanding shares with 10.5 million being freely tradable while the stock had fallen deep into the double-zero price levels. Furthermore MRNJ were seeing extremely limited trading closing quite a few sessions with ZERO traded shares. So what exactly caused yesterday's unprecedented session during which more than 42 million MRNJ shares were exchanged?

Well, the company did release a new PR announcing that it will spin-off some of the app portfolio from its i-Mobilize division which undoubtedly got investors excited. Rather curiously coinciding with the PR at the very start of yesterday's trading the extremely active in the past couple of months pump newsletter the Wolf of Penny Stocks also decided to issue an email alert stating that MRNJ is its latest pick. As usual the Wolf disclosed a $55 thousand compensation for his services.

No matter what the reason for the record trading was the fact remains that the increase in volume did not translate into an increase in share price. The pump coupled with the PR did push MRNJ to open with a gap up at over $0.0059 followed by a quick surge to an intraday high of $0.0099 in the minutes after the opening bell. Immediately after that though the stock lost all of its momentum and began crashing downwards closing the day at $0.0026 for a loss of more than 25%.

Those investors who followed our advice to never take the words of the pumpers at face value and actually did some due diligence may have been able to avoid incurring sizable losses. Let's start with the latest financial report. It covers the quarter ended September 30 and according to it back then MRNJ had:

• $271 cash !!!
• $60,850 total current assets
• $100 thousand total current liabilities
• $28,847 revenue
• $66 thousand net loss

Furthermore, as we said earlier yesterday 42 million shares changed hands while at the end of September MRNJ had 10.5 million freely tradable shares. While it is possible for the entire float to be moved a couple of times during a single session doing so four times seems unlikely. This could mean that millions of fresh shares may have seen the light of day during the past two months.

Trading pumped stocks is always extremely dangerous. Without the artificial hype of the pump many investors might be stuck into a highly-illiquid stock that is surrounded by red flags. 

Comments 1

1. Guest
June 20, 2016, 08:01PM

Quotes Buy MRNJ $100 share price target New Business Multi-Million Revenues Bullish Buy

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