jebmo’s posthaven

Nami Corp. (OTCQB:NINK), previously known as Pack Fuerte, was founded in 2012 and is based in Las Vegas, Nevada. Up until late 2016, the company was looking for backers to fund a business plan to produce a locked compartment inside backpacks and general luggage. The company's latest business plan du jour is to acquire assets in the form of profitable companies throughout the Asian region. This is just vaporware, as the company has no money and just one manager with no relevant experience in acquiring assets or even running a company.

Mr. Ong Tee Keat has been Chairman, Chief Executive Officer, Secretary and Treasurer at Nami Corp. since December 2016. He served as Political Secretary to the then Housing and Local Government Minister, Datuk Lee Kim Sai, since 1986, and was a Member of the Parliament of Malaysia until 2013 (see here for more information). Prior to 1986, he was a mechanical engineer and wrote a column in a local Chinese newspaper. Mr. Keat may have been a credible political figure for most of his career, but his business experience is lacking, to say the least.

On October 31, 2016, Mr. Keat acquired 60.22% of the company's shares from Bunloet Sriphanorm, constituting his entire position. Mr. Sriphanorm was the former majority owner of Pack Fuerte, and he subsequently resigned. This was part of reverse takeover, where the surviving company was Nami Corp. On the same day, the company filed a Certificate of Amendment with the Nevada Secretary of State to: a) increase the Company's authorized number of shares of common stock from 200 million to 5 billion; and b) institute a 7-for-1 stock split of all issued and outstanding common shares. Subsequently, Mr. Keat owned 425.250 million shares, equating to 60.22% of the 706.125 million shares outstanding. As of a February 13, 2017, filing with OTCQB, Mr. Keat still owned 60.22% of the outstanding shares of Nami.

NINK shares opened on the OTC Pink Sheets on December 16, 2016, at $0.10 and closed at $0.12 on 4,000 shares. The stock skyrocketed on higher volumes to the $0.65-0.85 range in the ensuing weeks. NINK shares then went quiet for a few months on lower trading volume, before recently going parabolic again to close at a record high of $1.49 on Friday, March 31st.

NINK stock is currently valued at $1.052 billion, but is fundamentally worth zero. The company has no revenues and a last-reported loss of -$14k. It is delinquent in filing with the SEC, with the last filing being for the quarter ended August 2016. As of August 2016, cash was at zero and current liabilities amounted to $46k. There is no formal business plan, and only one manager without business experience.

This is purely a manipulated stock price and market value. The usual players are there. Knight (KCG Americas) is on the best bid (1.50) and ask (1.99). In a pure conflict of interest, Knight is also a lender in some of the stocks it makes a market in. So, a risk for investors is that Knight widens the bid-ask even more, and then may be able to increase the borrow rate, which is currently 14% per annum. Nami's securities lawyer (Booth, Udall Fuller / W. Scott Lawler) and auditor (AMC Auditing, LLC) work with a number of other questionable OTC stocks, many of which are delinquent in their SEC filings. But all are a fraction of Nami's valuation.

Currently, there is no shorting activity listed on these shares besides a small number of shares that Quan shorted last week.

If no substantial shorting pressure is put on these OTC bubble stocks, these stocks can linger at these extreme overvaluations for an extended period. Eventually, gravity brings these stocks down to earth.

Disclosure: I am/we are short NINK.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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