the OTC .today

OMG! Not OMVE Again?

June 19, 2012: “OMVE could be the next True Religion Jeans” and “seen on ‘A-list’ celebrities such as Ali and Lindsay Lohan, Ashton Kutcher, Jennifer Love Hewitt, Katy Perry, Pete Facinelli, Eva Longoria, Kim Kardashian, Mark Walhberg, Taylor Swift, Jessica Alba, and Jennifer Lopez.  We’ve heard this from the touts who have been pushing Omni Ventures (OMVE) for a year now.  Well guess what: the only reason the ‘A-list’ has been seen in OMVE’s PRVCY denim line is that they got them for free, in gift bags, etc. OMVE is not the next True Religion Jeans.  You can tell.  True Religion has never been the subject of a Pump and Dump scheme. And they have never paid for a phony research report to give them a phony price target.

So what’s the real story behind this “apparel giant”?  Let’s take a look at its performance over the last year, during which they’ve sold more stock to the public than they will ever sell jeans.

The first OMVE Pump & Dump campaign began exactly a year ago, when the insiders (including financers) held almost every single share of stock. During the campaign, the stock traded as high as 80 cents and about 500K shares were dumped onto the street.  Those lucky buyers are now down as much as 60% on their investment.  At that time there were 92.6 million shares reported as outstanding.

The next P&D occurred during August of 2011, with the share price already cut in half.  That P&D didn’t fare so well, as very little stock was bought into the campaign.

The third P&D started in November of last year, with the share price down another 25%, now trading just below 30 cents and the number of shares outstanding having been increased to 109.2 million shares.  While that campaign fared a little better than the previous one, a combination of no less than 12 touts pumping the guts out of the stock still couldn’t generate much interest.  So they try again.

Effort number four.  This campaign started at the end of January of this year. The share price is now below a dime, creating losses of as much as 90% for those who participated in the first P&D.  The number of shares outstanding has increased to 111.4 million. This multi week effort has enabled the insiders to dump a bunch more stock onto the street, although without any real increase in the share price.

Then jackpot!  A number of meaningless celebrity related announcements and a behind-the-scenes promotion creates millions of shares of buying in the stock, pushing the share price up into the 50 cent range in late April – early May.  All of these buyers soon regret their naivety, as the share price quickly comes back to Earth, and those dupes are suffering up to 60% losses in just over a month.  In the meantime, the insiders are ringing the register.

Pump & Dump number 5 begins in mid-May, as the stock, already off the highs achieved earlier that month, is touted by and its twin brother,  The number of shares now outstanding is an astounding 141 million, a 52% increase from just a year ago, as the printing presses at OMVE keep churning.  The share price heads straight south and the addition of the pumping efforts of the Stock Psycho at, can’t stem the downward flow, as millions of shares are dumped onto the street.  The campaign continues with today’s concerted effort of no less than 12 additional touts tossed into the fray.  We expect huge volume and limited temporary gains, if any, as millions of shares of additional insider stock will get dumped onto a naïve public.  We’ve already seen what happens to OMVE when it hits a trading high.  This time, we expect new lows to hit in the very short term, perhaps today, as it may be the last shot that insiders have at dumping their stock.

Looking at the performance of the company, in the year that this scheme has been in existence, the company’s cash position has improved from $2,864 to $8,188. Yay!  Reported assets have decreased a ridiculous 91% in one year, going from $3.9 million to $343K.  Debt has increased from $584K to $749K and no wonder.  Quarterly revenues, year over year have gone from $260K in March 2011 to a negative $2K in March 2012.  The company is going backward, not forward!

And yet, the touts are expecting you to buy into this practically insolvent company with a $27 million market cap, and they are doing it with a straight face.

We think that True Religion has nothing to worry about.  Buyers of the stock, on the other hand….