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  • DIMI Telematics International, Inc (OTC: DIMI) Penny Stock Explosion! 0 comments
    Jul 2, 2012 9:39 AM

    DIMI Telematics International, Inc (OTC: DIMI) started trading in the second week of June at $1 and quickly sunk to a low of $0.53. Since then the stock has made a spectacular run to highs near $2 a share. Many investors have bought in and are beginning to ask "how high will DIMI stock go?

    DIMI was co-founded by Ferrari race car champion Roberto Fata so that he could race anywhere in the world and still monitor and control his family's Manhattan commercial real estate business. The company develops and distributes Machine to Machine (M2M) communications solutions used to remotely track, monitor, manage and protect multiple mobile and fixed assets in real time from web enabled desktop computer or mobile devices.

    DIMI Telematics International, Inc (OTC: DIMI) recently announced that they had acquired Green Genie; a mobile app rated #1 by TechCrunch which has sold an amazing 14,000 copies at $0.99 cents each. They have also launched a nationally televised commercial titled "Smart Just Got Smarter" scheduled to air on CNN, CNN Headline News, CNBC, Fox Business, MSNBC and many others.

    Currently trading at a market valuation of well over half a billion dollars one might expect that DIMI has proven revenue streams of 10's of millions of dollars if not more however a little digging and one quickly discovers that the massive dollar volume and price movement is built on nothing but hype and hot air. In fact, the company has insignificant revenues to date and little in assets besides the $1M in treasury.

    The stock is being promoted by Flaherty Financial News both online and via hard mailer with a total production budget of well over $2M. As I have said many times in my many articles on these heavily promoted stocks; they do not usually end well for investors and this one will be no exception to the rule. While it will probably continue to run higher in the short term, once the hype is over and the promotion dollars stop flowing, DIMI will fall fast and hard and will trade for well under a quarter 6 months out.

    OTCMagic.com is quickly becoming the preeminent destination for up to date information on the hottest stocks in Penny stock World.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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