Daily OTC Markets Preview – 11.07.2013
Top Promoted Stocks: TUNG, AMMX, PLCSF
Yesterday, most US benchmark indexes managed to finish in green numbers despite the predominant bearish mood in the first half of the trading session. The OTCM ADR Index followed the same pattern and after trading below the previous close in the first half of the session, in the second half it shot up and eventually closed 0.20% higher at 1,3777.14.
Yesterday, the OTC Market was under the influence of a couple of medium paid promotions which were in the focus of penny stock traders throughout the trading session. Today, our promotional radars have detected a much higher promotional activity on the penny stock market. Online promotional databases show that more than a dozen campaigns have been started since the last closing bell, most of which are only lesser promotions, but there are also several expensive campaigns which we are going to examine below:
Tungsten Corp. (TUNG) – The highest paid promotion before the opening bell today is dedicated to TUNG. There are two groups of promoters in this campaign, the first one is sponsored by ODD Marketing LLC and includes Club Penny Stocks, Wall Street Buzz and Break Out Stocks, the second one is sponsored by Full Service Media and includes Stock Publisher and Penny Stock Crew.
According to online promotional databases, the total sum invested in this campaign equals $44,500. The company was featured in a promotional campaign for the first time on June 6th this year, when Trader Central started spreading paid newsletters dedicated to TUNG. At that time the promoter disclosed that he managed a total production budget of $503,500 regarding the campaign on TUNG.
The results of this promotion were not very impressive, though, as on the same day TUNG tanked 7% down to $0.90 per share on a below average volume. The more observant penny stock traders may have noticed that since the first promotion on TUNG its stock has lost one third of its value and is currently trading at $0.35 per share.
This week TUNG lost another 12% of its share value on the background of a trading activity which was below the monthly average.
The last time investors received news by the company was on June 25th when TUNG announced the appointment of David Bikerman, a “mining veteran”, to its Board of Directors. This gave a breath of fresh air to the stock as it rose 6% during the same day on a below average volume of 290 thousand.
TUNG is currently valued at $24 million which is hardly based on the company’s current financial condition as the last 10-Q report showed that the company had as of April 2013:
- $54 thousand cash
- $165 working capital surplus
- Zero revenues and $113 thousand net loss.
Apparently, these figures are not enough to justify the company’s market capitalization at this point which makes TUNG stock still susceptible to selling pressure.
AmeraMex International Inc. (AMMX) – The next promotion is dedicated to AMMX, a Pink Sheet Limited Information Company. The campaign has involved several promoters among which Stock Rock and Roll, Stock Bomb, Penny Stock Locks and Stock Lock and Load, all of which had been compensated $12,500 by ODD Marketing.
There are also two other promoters, Penny Stock Professor and Penny Stock Spy, who didn’t provide the names of the third parties but revealed a compensation of $10,000 and $2,500 respectively. The total cost of the campaign sums up to $25,000, according to online stock promotion databases. This appears to be the first time the company has been promoted, therefore there is a higher chance that the campaign bring more trading activity towards TUNG today.
Yesterday, TUNG issued an update on its Northern African Project. In this respect, the company announced a potential five-year contract valued at $500 million which would let AmeraMex replace heavy capacity trucks and trailers owned by the Department of Transportation in a North African country, whose name was not provided “due to the competitive nature of the transaction”.
This announcement enlivened the trading activity around the stock, so yesterday it finished 8% higher at $0.013 per share on a volume of 300 thousand, which is two times higher than the monthly average.
AMMX is a company which sells, leases and rents heavy equipment to companies within the construction, shipping, mining and logging industry. The company’s stock is traded on the Pink Sheets where it is marked with a limited information sign. Currently AMMX has a market capitalization of $5 million and a 52-week range of 0.024 – 0.0027.
PLC Systems, Inc. (PLCSF) – PLCSF can also boast of a heavily compensated promotion today. The company’s stock symbol has appeared in the headlines of a dozen paid newsletters since the last closing bell.
According to online promotional databases there are two third parties behind this campaign, namely Galaxy LLC and TSX Ventures LLC. Some of the promoters who are taking part in this promotion are Penny Pick Finders Penny Stock Prophet, Damn Good Penny Picks, Prepump Stocks, the Market Caliber Team and so on. The sum of all the compensations distributed among the various promoters reaches $37,000.
The company has also supported the market awareness efforts today by issuing two press releases. On the first place, the company announced the expansion of its suite of corporate communication channels. Second, PLCSF also announced that it had published a new blog post on the Chairman’s Blog, compiled by the company’s president and CEO, Mark Tauscher.
PLCSF is a medical technology company specializing in innovative technologies for the cardiac and vascular markets. Its stock is traded on the OTCQB Markets where it holds a market cap of $5.8 million and a 52-week trading range of 0.30 – 0.085.
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