There’s a really weird penny stock out there.
Joymain International Development Group is worth over $US7 billion, even though it had $US1.4 million in sales and just 2 US employees, according to its latest filing with the SEC.
According to its latest filing, the company “develops, sources, markets and distributes healthcare related consumer products in the global market.” Joymain
is incorporated in Nevada as Advento and lists its offices in Miami.
Joymain is traded over-the counter and on Tuesday, shares fell by more than 21% to around $US6.40. And this might seem like a lot. However! The stock climbed from $US0.08 in March to north of $US8 on Monday, a nearly 9000% increase!
It’s worth noting that 80% of the company’s 1.12 billion shares outstanding are owned by one person — Xijian Zhou, according to filings.
And so with so many shares in so few hands, as can happen with penny stocks, it’s easy for the stock to get on a runaway to the moon. And quickly.
For penny stocks, however, weird stories like this aren’t unusual. Recall that last year, shares of Cynk, the mysterious social networking company, crashed after its market cap surged to more than $US6 billion within a few days even though it had no revenues, no assets, and only one employee.
Cynk’s 25,000% rise caught the SEC’s attention, and the stock was eventually halted.
We reached out to Joymain and will update if we hear back.
Here’s a year-to-date chart of the stock: