October 8, 2015 (Update): A year later and the RLIA Pump & Dump campaign begins anew. This time, however, there is the added caveat of delinquent financials so we have no idea how many shares are out there but we'd bet that it is a lot more than the 96 million last reported 17 months ago.. Also, today OTCmarkets tagged the stock with a "Caveat Emptor" status for suspicious activity and promotion. Be careful.
September 8, 2014: Time for a look at Reliabrand, Inc. (RLIA), a Kelowna, British Columbia based company that is a family-run operation--the President's sons operate the company with their Dad, who is the sole officer and director. It is absolutely an actual operating company that does what it says it does, rare for what is about to become a penny stock dump.
We know the company is real because we actually researched RLIA late in 2012, when previous attempts to boost interest in shares through promotion, fell by the wayside. Back then, the company had not yet announced its distribution relationship with Walmart Canada, who had agreed to feature RLIA's baby bottle products on its shelves. But company President, Antal Markus, boosted of the pending announcement to us and eagerly provided a contact at Walmart, who confirmed the deal. When questioned about the Praetorian Media December 2012 one-day promotion and another conducted on a day in January 2013 by the now dormant Hot Shot Stocks, Mr. Markus revealed that some of the seed shareholders, many of whom had paid 25 cents for shares, were growing impatient with the stock's drop in share price. He surmised that perhaps one of them had financed those pumps. He adamantly claimed total ignorance of the source of the promotions, or that they had even occurred, and seemed genuinely surprised when we presented a copy of one of the emails. For some reason, we chose to believe him and left it alone.
|Segment From RLIA Pump Piece - December 2012|
The reason for the issuance of these cheaper shares and the Pump & Dump campaign set for launch this morning by investor-killer, Research Driven Investor, is quite simple. This company, for all its genuineness and initial honest intentions, is failing badly. Let's look at the evidence.
In the Form 10-Q filed on May 20, 2014, for the quarter ending on March 31st, RLIA booked $77.4K in revenues. This was the first quarter in which Walmart Canada sales could be booked. In the previous quarter, $155K in revenues were reported. At a minimum, no positive effect can be seen from the Walmart Canada distribution agreement.
All this would normally invite a second chance: let's see what the results are for the second quarter of the agreement. The problem is that no quarterly results via a 10-Q filing have been offered. Where RLIA had previously filed these forms like clockwork, within seven weeks of the end of the quarter, we have now gone ten weeks since the end of the June 30th quarter. The launch of a Pump & Dump campaign ahead of a quarterly financial report, especially when that report is uncharacteristically late, is the sure sign that bad news is afoot. It doesn't take a Mensa membership to figure that if the financials look good, they would be released prior to the launch of the Pump & Dump campaign. Especially if that campaign was financed by the company, such as this one is.
|Segment From Current RLIA Pump Piece|
On August 29, 2014, Reliabrand Inc. (the “Company”) announced that it has retained LionsGate Ventures Inc. as its investor relations firm for an initial period of three months.The pump piece, is quite clear about who owns the newsletter;
and the compensation statement is also quite clear about the identity of the check writer:
Whatever goodwill is gained by RLIA's openness of its participation in the scheme, it is lost by the obvious advance tip-off to a select few, as evidenced by the limited increase in trading volume over the last month. Previously the stock traded by appointment.
|Trading in RLIA since June 20, 2014|