Welcome Back to the Stock Market Toppy, Top, Top, of Toppiness

by John Galt
August 15, 2016 20:15 ET

Yeah, okay, maybe not the best version of the song, but I think my readers understand my point. The S&P 500 closed at another already record super duper CNBCgasm high today on low volume and a very questionable economic and technical structure.

Just like it did in 2007.

081516_SPX500_10YRjgfla

While the insanity with in the major indexes reflect a mania, a bubble, a parabolic blow off, etc., etc., the off the radar investment warning signs are everywhere with dark pool deals which would make grown regulators cry.

Then of course there are stories like Neuromama.

Business Insider reports that this company last filed a financial report in 2014 listing the following:

The company lists offices in seven locations from Las Vegas to Sydney, Australia. The company has not filed any financial information with the SEC since its quarterly results in January 2014 for the quarter ending in October 2013.

In that statement, Neuromama listed $1,081 in cash on hand and $18.26 million in “intangible assets” as it’s only assets. It listed no revenue and a loss in the previous nine months of $500,811.

Yup, about $1,100 cash on hand. But the stock looks awesome:

081516_NERO_PK_14YRCHARTjgfla

The Bloomberg story does not offer any assurance about this equity either. From their coverage of the company and SEC ordered halt in trading:

Shares of the company, based in a beach community just south of Tijuana, Mexico, have quadrupled this year to $56.25, giving it a paper value exceeding Tesla Motors Inc., Yum! Brands Inc. and Delta Air Lines Inc. It hasn’t released financials since 2013, and when it did, the company reported no revenue. Neuromama trades in a murky, largely unregulated section of the U.S. stock market: the over-the-counter market filled with thousands of small companies, many of which don’t meet the New York Stock Exchange or Nasdaq Stock Market’s listing standards.

Neuromama’s website says the company operates in a broad range of businesses: a search engine, licensing “heavy ion fusion technology patents,” and Cirque-du-Soleil-style performances in Tijuana, to name just a few. “NEUROMAMA, LTD. IS A FAST GROWTH COMPANY TODAY …. AND ….. THE BLUEST OF THE BLUES … A REAL ASSET PLAY OF TOMORROW!” is how it describes itself.

What does a company with an estimated market value of $35 billion look like versus Tesla, another company which has yet to make a profit of any sort?

081516_NERO_PK_v_TESLA_MKT_CAP_BBG

Yeah, that bad.

My only question is how this did not get a full day on CNBC and an automatic listing on the NASDAQ once it passed Yahoo’s net market value. Ah well, maybe not enough of the central banks own the stock to get that approval process accelerated.

But don’t worry, we’re not anywhere near a top. This guy continues to hint as much:

jim_cramerAAPL

 

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