Definitive Rest Mattress Company (OTCPK:DRMC) is a name that I believe is currently the target of a penny-stock promotion scheme. It is my view that the stock's intrinsic value is somewhere near $0, and it is with conviction that I recommend that any investors currently in the name sell the entirety of their stakes immediately. I also believe that Definitive Rest Mattress Company is a stock definitely worth shorting. My track record of identifying and publicly exposing such highly overvalued equities is excellent.
Little Revenue. Debts. No Business. Bright Future?
As is usually the case with these types of hyped-up scams, it takes only one quick glance at the balance sheet to realize that the $104M market capitalization that this equity commands is beyond ludicrous. With $111,835 in current assets and $343,273 in current liabilities you can see that this company is far from deserving a $104m valuation. It's my suspicion that the purpose of this company is not to succeed but to sell stock. The recent volume is due to an overtly bullish promotional spam.
Picture of DRMC Chart
You can see that trading in Definitive Rest Mattress Company started seeing really big increased volume on Apr 16, 2014. A simple search in my email inbox and you can see that's around when I started receiving hundreds of promotional emails from various websites promoting Definitive Rest Mattress Company. Coincidence with the time of emails and increased volume in Definitive Rest Mattress Company? Absolutely not.
Now let's look at some of the disclaimers.
400k compensation to Stock Freak
55k compensation to Stock Mister
9k Compensation to Penny Stocks 101
25k Compensation to Sherwood Ventures LLC
35k Compensation to PennyStockMoneyTrain
44k Compensation to Stock Psycho/Focus Media
Reasoning for Stock Promotion
Look no further than these stock promoters' disclaimers to know why the reason for so many promotional emails.
The Stock Freak expects to be compensated up to $400,000.00 from La Jolla IPO for the 1 day profile of Definitive Rest Mattress (OTCBB:) which services include the issuance of this release and the other opinions that we release concerning of Definitive Rest Mattress The Stock Freak has not investigated the background of La jolla IPO the hiring party. Anyone viewing this newsletter should assume the hiring party or affiliates of the hiring party own shares of Definitive Rest Mattress of which they plan to liquidate, further understanding that the liquidation of those shares may or may not negatively impact the share price.
Key phrase is "Anyone viewing this newsletter should assume the hiring party or affiliates of the hiring party own shares of Definitive Rest Mattress of which they plan to liquidate, further understanding that the liquidation of those shares may or may not negatively impact the share price."
Obviously someone is holding a large amount of DRMC free trading shares they are looking to unload. The email promotional campaign has brought in good volume to dump into and I expect them to keep dumping.
Recent SEC Halts
The SEC is finally cracking down on pump and dumps lately. Here is a list of big stock promotions that have been halted recently. I believe Definitive Rest Mattress Company has a chance to be next. My latest report on a illegal spam pump on Imogo Mobile Technologies Corp. was followed by an SEC halt. I believe the halt risk is very high for Definitive Rest Mattress Company, especially with so many stock promoters teaming up to promote it. Stocks that get halted tend to reopen 2 weeks later down 70%+. My latest report on Imogo Mobile Technologies Corp was halted five trading days after my report was published. Makism 3D Corp. and Life Stem Genetics were two pumps that halted after my articles as well.
- Imogo Mobile Technologies Corp. (OTC:IMTC) halted February 19, 2014.
- Centor Energy, Inc. (OTCPK:CNTO) halted February 11, 2014
- Makism 3D Corp. (OTCPK:MDDD) halted December 13, 2013.
- Guar Global Ltd. (OTC:GGBL) halted December 6, 2013.
- Nevada Gold Corp (OTC:NVGC) halted November 27, 2013
- Life Stem Genetics Inc (OTC:LIFS) halted November 25, 2013
- Sovereign Lithium (OTC:SLCO) halted November 15, 2013
If you own shares of this company, get out now. Do not hope that you can hang on to sell them to a greater fool. These shares are worthless. I have showed you that the reason for the promotional spam indicates that the individuals behind this stock scam are trying desperately to unload their worthless shares onto the unsuspecting public and book a huge profit before the inevitable collapse. If you are a more sophisticated investor and can get a borrow on these shares, then I believe that shorting this name will be highly lucrative for you. In this stage of the promotion with the stock halt risk it is not worth staying long overnight to make .05-.10 more in gains when there is a risk of 70% in losses. I believe Definitive Rest Mattress Company will be down big by the end of the week.
Disclosure: I am short DRMC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.