Joey New York Inc (OTCMKTS:JOEY) is the target of paid stock promotion. In last week of February, a series of pumps from Penny Picks, BeatPennyStocks and DamnGood PennyPicks were sent out prompting investors to buy the common stock of the company, stating that it has major upside potential and is close to completing a merger deal.
The facts
Here, it is worth mentioning that more than 75% of JOEY stock is owned by insiders. Also, the financials of the company do not support the promotion claims. There is a note in the financial statements which states that paid promotion is meant to create a favorable market for third parties to sell their shares. It is not meant to inform investors of a investment opportunity.
The business
Joey New York is a firm that is into the distribution of cosmetics. As per the last 10-K, the company through its subsidiary Beauty, LLC distributes beauty and natural skin care products on retail and wholesale levels. The headquarter office is in Sunny Isles Beach, Florida. It intends to expand market share and launch its product line via multiple channel markets. It faces tough competition from nationally recognized companies that may have more resources of capitalization, personnel and reputation. It is the prime reason Joey New York has concentrated its measures on product quality and performance
The product range
Joey New York extensive product range includes beauty enhancements and skin care treatments that are effective, affordable and health conscious. Few years ago, the company was known as Pronto Corporation. It was renamed in September 2013 along with a 20 for 1 stock split. As per the latest 10-K filing, there are only three employees in Joey New York which appears small staff for distribution firm.
In last trading session, Joey New York Inc (OTCMKTS:JOEY) stock price plunged 13.04% to close at $0.0400 with 498,134 shares traded.
