18 Apr Direct Equity International Inc (DEQI) – hijacked shell
A Reinstatement filing just cleared at the Nevada SOS for Direct Equity International Inc (DEQI). Today we watched another reinstatement play that we found first move from $0001/share to $.0024/share (2,400% gains) - Beyond Commerce Inc (BYOC).
Before I go in further let me make very clear that DEQI is no BYOC.
The two biggest things that BYOC had going for it is that it had a share price that was attractive to more penny stock investors at $.0001/share and it was reinstated by a management team that had a history with the ticker and thus a history of real business operations.
Just about all reinstatement tickers are trading at a very low price compared to other tickers with similar share counts. Their prices dropped because of the basic laws of supply and demand. When nobody has an interest in buying the stock the price drops. It is also this same principle that makes reinstatement plays so attractive. Because of the relatively low share price once that buying interest comes in (which commonly happens when a reinstatement filing is done) the price can move up quickly.
DEQI currently trades at $.05/share and though the ticker was trading at $.35/share less than 11,000 shares ago, because it is already at $.05/share and has an ask at $.25/share there will not be much interest by retail investors in buying the stock even with the low market cap.
DEQI was reinstated by a known penny stock hijacker with a bad reputation in the penny stock world, Claire Singleton.
Some more information about the resintatement
On March 20, 2013, Ricochet Trading Inc through attorney Peter L Chasey filed with the Clark County Courts to become the custodian of the Direct Equities International Inc entity.
In order to file for custodianship you need only own 1 single share of the stock and not receive any objection from the previous management. The process is legal, but it comes with the terms that the custodian has to put the interest of the other shareholders first including making efforts to continue existing business operations. These terms are often broken and the shells often become used for insider enrichment schemes using old (often bogus) debt Notes, reverse mergers, and/or reverse splits.
Peter Chasey was the attorney that MinaMar Group used to use when they would hijack their shells. Read this old report of mine that I posted on the IHUB a couple of years ago for more details.
Ricochet Trading Inc is controlled by Warren Wheeler and has also been involved in hijacking Universal Ice Blast Inc (UIBT), Hybrid Fuels, Inc (HRID), Geo Vision International Group Inc (GVIT), and Cecors Inc (CEOS)
Geo Vision International Group Inc (GVIT) got pretty much no fan fair when it got reinstated on July 26, 2012, but in January of 2013 did get pumped pretty hard on the IHUB. Warren Wheeler has brought that one back up to pink sheet current information status. The first OTC filings hit on September 14, 2012.
Universal Ice Blast Inc (UIBT) also got pretty much no fan fair when it got reinstated on July 26, 2011
Hybrid Fuels Inc (HRID) became NOUV. The ticker got lots of fan fair when that ticker got reinstated as Hybrid Fuels Inc (HRID) on April 27, 2011 rising up over 500%. Warren Wheeler also brought this one back up to pink sheet current information status. The first OTC filings hit on June 2, 2011. See NOUV 2 year chart below:
Cecors Inc (CEOS) got reinstated on January 23, 2013. We were the first ones to catch the reinstatement here at Promotion Stock Secrets. When CEOS got reinstated it was trading at $.0031/share. It managed to rise to $.024/share but has since dropped back to $.0072/share. Wheeler filed a Form 15 to move CEOS to the pink sheets, but very little has been done since then. Read more about the CEOS reinstatement here.
Unlike past Warren Wheeler hijackings, Claire Singleton was assigned the role of sole officer/director of DEQI and not Warren Wheeler. The oddest part is that according to the Clark County Court Records, the custodianship has not yet been granted to Ricochet Trading Inc so I wonder if Claire Singleton who has a long history of shell hijackings of her own didn't come along and steal the shell independent of Wheeler's attempt to gain custodianship.
Singleton did play a role with HYID, so I know that Wheeler and Singleton do know each other so I'm going to assume that they are working on a team again on this one.
Most of Claire Singleton's past hijackings have happened with Colorado business entities. Her two most famous hijackings are Life Design Station International Inc (LDSI) and Tenguy World International Inc (TWGI). In both of those cases, Singleton raised the authorized share count into the multi-billions then used the tickers for insider enrichment through ugly ugly dilution. Read more in this report.
Reinstatement plays are a usually a great opportunity for profit, but DEQI is one that people may want to stay away from. The ticker has way too many things going against it and in the end mostly just the dirty insiders will end up making money on this one.