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Drone Guarder Inc (OTCMKTS:DRNG): We Warned Everyone

Drone Guarder Inc (OTCMKTS:DRNG): We Warned Everyone
Written by
Jarrod Wesson
Published on
June 15, 2017
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We told you so! Do you remember the article about Drone Guarder Inc (OTCMKTS:DRNG), wherein we warned email subscribers to be careful on the company?This is what we said:

"Promoted stocks tend to rise because of the work of the stock promoter. But, later on, usually share price declines when the promo dollars dry up. Thus, buyers beware! The share price could keep creeping up as more emails are sent out and new market participants buy shares. Some will make money. However, in a few days, weeks or months, the stock promotion will stop or the exchange will warn the market about it, and the share price may fall sharply. So, again be careful on this name." Source

With that in mind, now look at the chart, and note that the share price declined more than 50% since we put out our piece. In this update, we will tell you what's going on with this pump and dump stock.SourceRecent Developments that justify the share price collapseOn June 1, 2017, DRNG noted that the OTC Markets Group had marked the company with the skull and crossbones symbol:

"OTC Markets informed the Company that it became aware of certain promotional activities concerning Drone Guarder Inc and its common stock encouraging investors to purchase shares. The Company has been informed that this promotional activity may have had a material effect on the trading activity and market for the Company’s stock. Until informed by OTC Markets, the Company was unaware of the promotional activity and remains unaware of the full nature and content of this activity, the extent of the dissemination or the parties involved." Source

As we noted, the share price finally declined on June 13, 2017. Did the the promo dollars dry up? Did short sellers profit from the information provided by our website and the OTC Markets? It is difficult to explain the real reason. Only one thing is very clear. Be careful while investing in pumped stocks; short sellers make much more money than the longs:SourceHow did the company react to the news?The company reacted by stating that "the Company, its officers, directors and, to the Company's knowledge, its controlling shareholders have not, directly or indirectly, authorized or been involved in any way with the creation or distribution of promotional materials of any kind". Additionally, according to the company, none of these executives bought or sold shares within the past 120 days.What's our take? We believe that the trust in the company has been damaged. Additionally, we don't think that the share price decline has stopped yet.Furthermore, on June 8, 2017, the company reported its final phase of development for its first drone prototype. DRNG worked over the past months designing the first prototype of the company. The model is expected to be completed by the end of June or early July.In the press release, it marked the artificial intelligence software embedded in the drone software architecture. What is it for?The drone is able to detect a human shaped intruder in your house and communicate with the customer's smartphone by alerting about it. The release of the new model may have a large market reaction, as it means more revenues for DRNG. It is a catalyst, but given the promoting activities reported, we encourage email subscribers to touch this stock with extreme caution.Financial Situation and ConclusionWe warn investors again about the financial situation of DRNG. As of January 31, 2017, the company has very little cash and many liabilities. It is impossible that a company with this capital structure could be pushed up by market participants:ASSETSCurrent Assets January 31, 2017 January 31, 2016 Cash and cash equivalents 2,726 5,976Total Current Assets2,7265,976Fixed Assets Furniture and Equipment1,0501,050 Accumulated Depreciation(832)(624)Total Fixed Assets218426Total Assets2,944$6,402SourceNow, check the liabilities:LiabilitiesCurrent Liabilities January 31, 2017 January 31, 2016 Accrued expenses$16,875$3,406Accrued interest6,1802,163 Promissory notes payable 62,50037,500Advances from related party18,00018,000Due to shareholder2,208245Total Liabilities$105,76361,314SourceIn this article, we pointed out to our readers that we were right about DRNG. The company had been promoted for a while and OTC Markets gave it the Skull & Crossbones. The design of the drones continues and the model will be released this month or next. However, the release of the new model may not have a large share price reaction. The company needs to work again on the trust. The promoting activities have caused a lot of harm. Buyer beware!We will be updating our subscribers as soon as we know more. For the latest updates on DRNG, sign up below!Disclosure: We have NO position on DRNG and have NOT been compensated for this article.

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