Daily OTC Markets Preview – 31.05.2013
Another trading week is coming to a close and we are about to see off several consecutive sessions full with intrigue as some hyped penny stocks failed while others finished on higher ground. Although the action on the OTC Markets usually speeds down on Fridays, there are some key events today that are worth mentioning:
On the first place there is a large scale promotion on Duma Energy Corp. (DUMA) which was started yesterday in the middle of the trading session. The most ostentatious part of this campaign is the compensation which was disclosed by Too Nice Stocks, the promoter who first issued a momentum alert on DUMA yesterday.
According to the disclaimer, Too Nice Stocks expected to receive $350,000 for a one-month coverage of the company by a third party called Cambridge Consulting.
Today another group of promoters represented by Vip Stock Alerts and Hero Stocks joined the campaign on DUMA. They disclosed $25,000 as compensation which was also provided by Cambridge Consulting.
DUMA’s promotion came to support the company’s corporate update which was issued yesterday. In a press release published on Globe Newswire via Comtex the company announced it had received new 3D seismic data over its producing fields in Galveston Bay.
Apparently the press release and the trade alert managed to stir the appetite of market players towards DUMA stock as at the end of the day its value soared 18% to $2.43 per share on a record high trading volume.
In fact DUMA managed to break out of its trading channel, breaching the resistance at $2.2 and closed near its 52-week high. All of these developments are likely to bring the company in the focus of investors who are playing on the OTC Markets in the next couple of days.
DUMA is a US based company which produces oil and gas both on and offshore. Its stock is traded on the OTCQB Markets where the company currently holds a market valuation of $32 million.
Polar Petroleum Corp. (POLR) – POLR is another company which is in the focus of penny stock promoters today. Since the last closing bell the company has received promotional coverage by Super Stock Plays and Buy Penny Stocks, which have been compensated $12,500 for the service.
The most striking thing about the campaign on POLR is that yesterday the company was also featured in a newsletter issued by Trader Central who disclosed a compensation of $1,960,000 provided by Commodity United Ltd.
Yesterday, POLR closed the session 5% higher at $4.40 per share on a volume of 300 thousand which is double the 3-month average. Since April POLR stock value has surged roughly four times giving the company a market value of $188 million.
During the previous trading session POLR also announced that it planned to acquire well data and interpretation for four wells within the company’s Alaska oil and gas projects. POLR is an oil and gas company based in Anchorage, AK, which is traded on the OTCQB Market.
YaFarm Technologies, Inc. (YFRM) – Yesterday YFRM fell down 18% to $0.0365 per share on a volume eight time higher than the 3-month average. With this big plunge YFRM completely wiped out the gains which investors made on the stock the previous day.
These volatile episodes in the movement of YFRM stock took place without any recent news releases influencing the market. The lack of corporate updates from the company is not surprising given its Limited Information status on the Pink Sheets market.
In fact the sharp movements of YFRM stock were produced solely by the promotional campaign of the company which was initiated before the start of the trading week. The campaign included numerous promoters and cost $30,000 according to disclaimers.
Today the stock ticker is still being touted by the same promoting parties and in the meantime another groups of promoters has joined the campaign disclosing $8,500 as compensation.
The limited information status of the company renders it a highly speculative play. According to the limited records about the company it held a market value of $1,8 million as of May 30, 2013.