Ah yes, you remember when caught the winning touchdown to capture the high school football championship? Or when you won the Ms. Nebraska beauty pageant? Or gave selflessly of yourself that college summer break when you went to that African nation to build homes and till soil to grow food for the poor?Mem'ries,
Light the corners of my mind
Misty water-colored memories
Of the way we were
The question is - what have you done for me lately?
Today marks the launch of a Pump & Dump campaign on Horne International, Inc. (HNIN). Today also marks the start of a trip down memory lane.
The marketing campaign from the touts is "brilliant". A simple cut and paste job taken from Horne's own website. It's very impressive, especially the Past Performance page.
|Horne International's Past Performances Page <click to enlarge>|
It's quite a resume and it's all true. So why the Pump & Dump? Because you can't find a Current Performances page.
The last time that HNIN was profitable was during George W. Bush's term as President- his first term. The last time the company booked any real revenues was in September...of 2012.
What have you done for me lately HNIN?
The answer is, "not much". The company hasn't even issued a press release in almost two years. The latest financials state that it has nary an asset and no revenues. All this is reflected in the stock price, which has wallowed in the subpennies, right where it belongs. The financials say it all:
"The Company’s independent registered public accountants stated in their report on the consolidated financial statements of the Company for the years ended December 31, 2012 and December 25, 2011, that the Company has had recurring operating losses that raise substantial doubt about its ability to continue as a going concern. For the nine months ended September 30, 2013, the Company experienced a major decrease in revenue, incurred a net loss of approximately $724,000 and had a stockholders’ deficit of approximately $2,653,000 as of that date."This Pump & Dump campaign is designed to make the street believe that this is still a viable company, when in reality, it looks dormant and insolvent. We know who's behind it. That's easy. More from the latest financials:
"On February 19, 2013, the Company entered into a security purchase agreement with Asher Enterprises, Inc. (“Asher”). The Company issued a convertible note with a principal amount of $58,000 and maturity date of November 21, 2013. The note bears interest of 8%, payable at maturity, or earlier in the event of prepayment, and is convertible into common stock at a Variable Conversion Price of 58% of the Market Price. The Market Price is defined as the average of the lowest three closing bid prices during a ten day period prior to conversion. The issuance of the Note was made in reliance on the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended. The Company had the right to prepay the obligation at any time prior to August 18, 2013 with a payment of principal, a premium ranging up to 44% of principal and accrued and unpaid interest."and,
"The maximum number of shares into which the note with Asher could be converted is not quantifiable as the Variable Conversion Price is unknown."We estimate that Asher has converted enough of its debt to give it 10 million shares for sale right now. There will be plenty of more stock issued to Asher once the share price falls even further into the abyss after this Pump & Dump campaign is over.
Asher Enterprises is a toxic financier, noted for providing just enough money to keep a company afloat and its filings current. Asher charges a higher-than-market interest rate, but more importantly, mandates a conversion price of debt to stock at deep discounts to the market. Asher is notorious for then hiring promoters to pump the stock, so that it can divest itself of its position at over-inflated prices, without regard to the stench of the garbage it is dumping onto the street. And of course, once Asher is done dumping, the share price goes back to where it belongs.
Asher Enterprises is headed by Curt Kramer who also heads sister companies Mazuma Corporation, Mazuma Funding Corporation, and Mazuma Holding Corporation. In November 2013, Kramer and the Mazuma companies settled with the SEC regarding violations of securities laws with respect to selling billions of unregistered shares of stock.
The only question is whether the promotion is strictly the work of Asher looking to use the company's past as window dressing, or also the devious plan of some HNIN insiders colluding with Asher to get out from under the stock of a company that used to be. We'll know the answer if the company suddenly decides to issue a press release after almost two years of silence. If it doesn't, then it's just Asher looking to scam a few bucks off a dead ticker, a common ploy we discuss in a selection from our Pumps & Dumps 101 series, Does A Promotion Mean The Company Is A Fake.
Either way, the end result will be the same. This is a stock scam designed to line the pockets of a few.
But an investment is based on the present and the future. Not on the distant past.
Of the smiles we left behind
Smiles we gave to one another
For the way we were