Banneker, Inc. (PINK:BANID) One Stock, Many Trading Opportunities
16 Sep 2010

Banneker, Inc. (PINK:BANID), a company for which even on the exact number of shares outstanding is unknown, tanked by almost 100% down yesterday. The closing price of $0.0015 seems like the only thing on which there are no divergences in the publicly available information. As for the volume traded, however, there are at least two different versions.

According to the OTC Markets page, yesterday’s volume was around 181 million shares, while the public short sales trading report of FINRA gives a total trading volume of 67.3 million, 51% of which shorted. Though, none of that seems to comply with the rest of the scarce information about the company.

BANID is registered with the SEC under the name Cumetrix Data Systems Corp. and the latest filing dates back to 2007. At that time, the company was in the computer equipment business, which was not a successful initiative as losses of millions of dollars have been made. Now, BANID claims to be a manufacturer and seller of watches and jewelry based on the legend of Benjamin Banneker, has a fancy website and an online catalog of products with prices of up to $1,500 each.

The contact with customers is being conducted mostly over social networks like Facebook and Twitter. As for the investors, there the communication is in the form of press releases. The last one announced a 1-for-1,000 reverse stock split last week, creating a possible third version of BANID’s number of shares outstanding

According to the latest quarter report submitted with the OTC Disclosure & News Service, BANID had at the end of this March 1,024,059,909 shares outstanding, which suggests a number of around a million after the reverse stock split. The number at the OTC Markets homepage is 24,060 however, for which to be true the split ratio must have been about 1-for-42,562.

The number seems not so important anyway, as it will be updated again soon. As the company’s CEO Derrick Holmes stated in the above mentioned press release, the reverse stock split was an attempt to make the stock more attractive for institutional investors and to improve the valuation in the expected future funds raising activities.

For traders, still interested in a stock with a lot of speculative and manipulative potential, the new gaining symbol will soon be changed into BANI, and with some luck some up-to-date SEC filing may appear as well.

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