MarilynJean Interactive Inc (OTCMKTS:MJMI) Climbs, Then Crashes

MarilynJean Interactive Inc (OTCMKTS:MJMI) really took the OTC Markets by surprise this month in more ways than one. Shares were steadily climbing up the charts on the back of the strength of the company's tie-ins with Bitcoin. OTC Markets had no warnings on the ticker and everything looked normal, except it was not. On August 26, the SEC hit the company with a trading halt. Now investors are asking what's next.On August 26, the SEC came out and said:

It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of MarilynJean Interactive Inc. (CIK 0001504464) because of concerns about recent, unusual and unexplained market activity in the company’s common stock. MarilynJean Interactive Inc. is a Nevada corporation with its principal place of business located in Henderson, Nevada. Its stock is quoted on OTC Link (previously “Pink Sheets”), operated by OTC Markets Group Inc., under the ticker: MJMI. The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above-listed company. THEREFORE, IT IS ORDERED, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading in the securities of the above-listed company is suspended for the period from 9:30 a.m. EDT on August 26, 2016, through 11:59 p.m. EDT on September 9, 2016.

While we commend the SEC for taking action, we have to ask - why did they allow the company to trade in the first place and allow investors to get sucked in? It's like letting the thieves rob the bank first and then putting in an alarm system. It makes no sense! Maybe what got the SEC's attention was when the company said that it intended to leverage its Bitcoin exchange expertise and use of the Blockchain to potentially conduct a securities offering via the Internet. If approved, the company could conceivably issue shares on behalf of third parties who had also obtained SEC approval.Making matters worse is that it turns out MJMI is part of the same group that's been doing the same thing over and over again. MJMI is one of Elite Penny Stock Group's picks. For those that are not familiar with Elite, they are the most powerful newsletter group on the OTC markets. Their websites include finestpennystocks.com, smartstockchoices.com, smartstockwinners.com, BestAmericanStocks.com, and many others. What made Elite so powerful is that they have a massive database of names and followers. They even have other newsletters following their picks and then trying to pass off Elite picks as their own. Elite will blast their list several times a day trying to get as many buyers into their stocks as possible.What Elite has been doing lately is using new websites and sending out recommendations under new newsletters. The advantage here is that OTC Markets and due diligence sites like Insider Financial don't know that it is Elite behind the stock. They know that if anyone picks up the association with Elite, the party is over. The last Elite pick that we identified was Golden Edge Entertainment Inc (OTCMKTS:GDEE) early last month. As we said about Elite:

Unfortunately, Elite has left a trail of victims that only the Wolf of Wall Street can admire. Their last picks have been Broke Out Inc (OTCMKTS:BRKO), Cloudweb Inc (OTCMKTS:CLOW), AgriEuro Corp (OTCMKTS:EURI), America Resources Exploration (OTCMKTS:AREN), and Midwest Oil & Gas Inc(OTCMKTS:MWGO). Here’s a quick recap. BRKO got halted. EURI, AREN, CLOW and MWOG all left investors holding the bag.

At one point, MJMI had a market capitalization over $75 million. In looking at the latest financials, we see ZERO revenues, a quarterly net loss of $15k, $11k in cash, $13k in total assets, and $525k in total liabilities. What will happen next is that the halt should be lifted on September 9. From there, MJMI will trade on the Grey Sheets. We will be updating our subscribers as soon as we know more. For the latest updates on MJMI, sign up below!Disclosure: We have no position in MJMI and have not been compensated for this article.