Daily OTC Markets Preview – 14.06.2013
Promoted Stocks: OLIE, AMBS, BCYP
Yesterday, after the US Commerce Department announced that retail sales increased by 0.6% in May, which exceeded expectations, US stock markets became overwhelmed by a positive mood which sent the major benchmark indexes flying up. The OTCM ADR Index was also affected by an increased risk appetite, so it closed the last trading session 1.19% higher at 1,398.92 points. Today, there hasn’t been much promotional activity on the OTC Markets prior to the opening bell, but this is not surprising for the last trading day of the week:
Olie Inc. (OLIE) – OLIE is one of the few companies promoted today. The campaign was started by Stock Cabin who had been compensated $10,000 by an undisclosed third party.
According to online databases, Stock Cabin generates an average dollar volume of $143 thousand and the highest trade value achieved by OLIE in the last 30 days is $55 thousand. This suggests that theoretically the promotion has a change to create some buying pressure on the stock. Unfortunately, since it is not clear who the third party behind the campaign on OLIE is, we cannot be sure that the promotion is not serving certain interests which are in conflict with that of common investors.
Furthermore, the last promotion of Stock Cabin, which took place this Thursday and was focused on Feel Gold Co. Inc. (FEEL), was a complete disaster as the stock lost 40% of its value during the trading session. At the end of May, Stock Cabin also promoted Buyer Group International Inc. (BYRG) which crashed down 52% in a single trading session.
Yesterday, OLIE shares slipped won 9% to $0.3 per share on a volume two times higher than the monthly average. OLIE stock had not been regularly traded until the end of April when the stock started attracting more trading activity. At that time OLIE stock was valued at $1 per share but subsequently it lost two thirds of its value.
OLIE is a company traded on the OTCQB Markets which is operating in the field of business services. It has a market capitalization of $28 million and a public float of 16 million shares.
The newsletter issued by Stock Cabin hints there is a rumor that “big news is coming” from the company, so it is possible that OLIE will issue a press release later during the day.
Amarantus Bioscience Holdings, Inc. (AMBS) – Shareholders of AMBS were disappointed yesterday after the stock declined 8% down to a close of $0.0385 per share. AMBS registered a negative trading session, despite the paid newsletters and the announcement that the company had signed an agreement with BD Bioscience.
The decline of the stock may suggest that a higher number of market players have decided to take back profits from AMBS’s recent rally. The moment was suitable for profit taking as AMBS is close to its resistance at 0.045 and the announcement could provide for a buffer to a potentially overwhelming selling pressure.
We can see that yesterday more than 4.3 million shares of AMBS common stock changed hands, which is higher than the monthly average. AMBS generates a decent amount of average trading volume which implies that the stock is not about to lose its popularity on the OTC Markets soon.
Regardless of AMBS’s decline on the last trading session, the company is still being featured in paid newsletters. This time the company is promoted by NYC Marketing Inc and Titan Stock Alerts. The former had received $3,000 and the latter $1,000 for the service by unknown third parties.
Blue Calypso, Inc. (BCYP) – BCYP spiked up in the last two trading sessions, seemingly out of the blue, as there has been no new updates from the company and no promotional newsletters until the last closing bell.
On Wednesday BCYP stock surged 9% to $0.13 per share on a volume of 5.6 million shares, which is ten times higher than the monthly average. Yesterday, the stock continued the up-move and soared another 23% to $0.16 per share on a volume three times higher than the average.
The unusual volume and price spike of BCYP gave rise to various speculations about the stock on popular financial message boards. Thus, some investors supposed that this mysterious activity around BCYP could be “insiders exercising options”, which could mean that “a big announcement was coming soon”.
While rumors about BCYP are spreading out like mushrooms, a bunch of stock promoters, such as Buzz Stocks, Penny Stock Prophet and The Market Caliber Team, started issuing trade alerts on the stock after the end of that last trading session. Thus, the forthcoming trading session may become even more explosive for BCYP thanks to the market awareness campaign. Nevertheless, since at this stage BCYP stock is shrouded in mystery trading with this stock will seem risky until some corporate update sheds more light on the latest developments in the company.