That's all most penny stocks are is pump & dumps.
Especially the ones you see getting lots of attention on messages boards and on social media.
That's why I refer to LDSR as a momentum play.
It is being driven by pumping which includes a parade of press releases by LSDR.
The pumpers will take mundane details and try to exaggerate them (or even twist them) into something much more impressive sounding to try to pump the stock.
If you
1) understand how pump&dumps work
2) know not to believe the hype
3) realize that penny stocks are trades and not investments
Then you at least have the right mentality to profit off of them by trading them according to their price action. At that point it just becomes a moral issue (profiting off of a pump&dump, becoming one of the pumpers, etc).
Unfortunately a lot of people don't understand how pump&dumps work and they chase too high or hold too long and eventually end up losing a lot of money.
I think the hijacking issues could lead to LDSR never being able to get a name change approved with FINRA. If they can't even get a name change done then what does that say about the legitimacy of the Issuer as an investment vehicle for the public?
I wouldn't bet money on LDSR ever being suspended by the SEC because it's not an SEC filer, but there is a small chance some underlying issues with the security might get the SEC's attention. Especially if LDSR were to make any false claims about government contracts in any press releases.
I think the $125,000 convertible debt Note is the biggest issue by far. 2.5 billion free trading shares of stock can reap lots of havoc on a share price. I have no idea when that Note will start to come into play. Maybe it already has and the Note holder has been slowly dumping stock they are getting at $.00005/share into the market at $.01+/share making tons of money.
Either way, the momentum never lasts forever. The higher the price goes the smaller the profit margins get and the less attractive it becomes. Big pumper groups will eventually move on to other stocks that offer better profit opportunities leaving the people that ended up believing all the hype wondering what happened.