The trading halt is the third for the last four tickers pumped by these fraud artists. Many penny stock followers are still scratching their posteriors in wonderment that Writ Media Corp (WRIT) somehow escaped the wrath of the SEC. Not surprisingly, that scam took down millions of dollars of the public's money.
MJMI, while pretending to be a provider of Bitcoin-related services, briefly achieved a $123 million market cap, thanks to a lofty share price of 71 cents reached on Thursday. On that same day, just after hitting the all time high, shares tanked hard enough to end the day 57% below the previous day's close.
|MJMI Chart August 3- 26, 2011|
Sure enough, the trading suspension came down on the very next day. In yet another case of too little too late from the enforcers at the SEC, the regulator cites "recent, unusual and unexplained market activity" in the move necessary for the "protection of investors".
We surmise, that the company received mid day inquiries from the SEC and the criminally intended, expecting that the jig was up, pulled the plug on the scheme. The timeliness of the crash in the share price and the subsequent suspension certainly lends itself to such speculation.
Interest in MJMI stock was, of course, foolhardy and reckless, as evidenced in the company's own financials, and lead to the asked-for burning of investors. As of June 30, 2016, the company's total assets were $26,005, almost all of which was in cash. Liabilities were reported at $553,877, which were sure to be the onus for the future creation of additional shares, had the company been able to avoid the iron hand of the SEC.