NGMC – Pump & Dump Alert – October 24, 2014

| October 24, 2014

Pump and DumpPlease read this important alert – Penny Stock Scam in motion…

If you don’t know how these schemes work, be sure to check out our free report that exposes the whole thing.

Here we go again…

I got the email announcing I should, “Take your gains!”

The old fashioned pump and dump artists were back at it.

This time the email was about a company in the oil and gas space…

The Email About Next Generation Management Corp. (NGMC). 

I got the email announcing they’d perfectly timed the bounce… “23.5% real gains”…

Just as an aside… I guess I got left off their first email… apparently they didn’t want to tell me about this trade a few days ago… before it moved higher!

Anyway, this email continued on… a short squeeze was in progress with “possible triple digit gains today”.

Damn these guys are convincing…

I just wish it was true… I wish they picked good companies… but they don’t.

My Analysis of a Penny Stock Scam – Next Generation Management Corp. (NGMC).

So, the easy review was the email footer…

The email pumper was paid $15,000 cash for a one day promotion of the stock.

$15 grand!  One day….

Well I had to look at the company.

The first thing is they have SEC filings… that’s not so bad… but their most recent quarterly statement was filed late.  That’s never a good sign.

Well I cracked open the documents and the first thing that jumped out at me…

“As of July 24, 2014 there were 245,996,094 shares of common stock, $0.001 par value issued and outstanding.”

This tells me management is more interested in playing games than being a real company… When a company has hundreds of millions of shares outstanding, it’s a red flag…

Haven’t these guys ever heard of a reverse split?

Well let’s solder on into the financials.

Looking at their six month numbers, we see something really interesting… A year ago the company generated $96 bucks in revenue.  And for the same 6 months this year… they generated $21,730… not exactly life changing numbers.

But that’s just one problem…

The other issue is expenses… on $21K in revenue the company ran up bills of $932,659.  Almost a million in expenses.

After all the other garbage going on… the company lost $1,071,580 in a six month span.

I’m not a big fan of companies that lose money like that.  So just based on what I see so far, the stock is incredibly risky.

What else bothers me? 

They have $120K in cash and according to their cash flow statement, operations are burning cash at $70K for six months… so they have less than a year worth of operational cash on hand…

Not to mention they are issuing shares for services – Diluting shareholders.

Oh, and they have a going concern from their accountants…

And here’s the death blow…

The Company borrowed money on a convertible note at 18% with a conversion feature.  The Conversion allows the note holder to convert their note into stock at 75% of the last 10 days of trading volume.

You know what we call that… a death spiral.

In May 2013, the note holder converted into 12 million shares… then in February, they converted another 10 million.

I’d bet dollars to donuts that the note holder is dumping the shares on the market to make their money back…

This situation is really, really ugly.

Stay away from Next Generation Management Corp. (NGMC).

Profitably Yours,

Penny Stock Research

Tags: , , , , ,

Category: Pump & Dump Alerts

About the Author ()