Daily OTC Markets Preview – Aug 19, 2013
Top Promoted Penny Stocks: IALS, SNET, IXMD
Last Friday, the OTC Markets were the only sunny spot on the US stock markets. While the benchmark indexes continued to struggle with moderate bearish storms, the OTCM ADR index finished firmly above the previous close, rising 0.28% to 1,454.94.
The US benchmark indexes will continue to be focused around speculations regarding the possibility of Fed exiting the quantitative easing policy earlier than expected. As trading activity is still thin, the major US stock markets will continue to be volatile in the next couple of weeks, as there are no significant economic event to provide a foothold for the short-term market direction.
The OTC Markets will likely continue to surprise traders, as high volatility is natural for the stocks traded there. This volatility can be additionally exacerbated by the stock promotions which run rampant on this market segment. Today is not the day when the OTC Markets will trade without the influence of significant market awareness campaigns, so below we provide an overview of the most expensive promotions initiated during the weekend:
InterActive Leisure Systems, Inc. (IALS) – When checking the online databases today, penny stock speculators will first stumble on IALS, as so far this is the highest paid promotion for the day. A total of $40,000 have been poured into the effort to advertise IALS stock.
The campaign is backed up by M Elliot Media LLC and ODD Marketing LLC, who have so far engaged six promoting websites, among which Nathan Gold, Breakout Stocks, Penny Stocks 101 and others.
Newsletters presenting IALS as “Monster Monday Profile” or “a Hidden Gem in a Billion Dollar Sector” started flooding investors’ inboxes last night. The newsletters do not hint about any new announcements coming out from the company, but it is not excluded that IALS issue a news release later during the day to support the campaign.
The last time IALS issued a press release was two weeks ago when the company announced an agreement to acquire Travel Time Technologies Inc. On the same day, IALS stock exploded 180% to $0.35 per share on a record high volume of 2 million shares.
However, what followed after this stock explosion was a series of negative trading sessions which wiped out most of the gains achieved by the stock on that day. The negative sequence was broken on Friday when IALS surged up 15% to $0. 15 per share on a below average volume of 94 thousand.
SourcingLink.net, Inc. (SNET) – The next campaign set to hit the market on Monday is dedicated on SNET. The promotion catches the eye as one of today’s expensive campaigns. The campaign on SNET is only $5,000 cheaper than the promotion on IALS.
According to online databases, third parties, which have remained anonymous, have spent $35,000 for the marketing effort on SNET. The campaign is led by only three promoters – Damn Good Penny Picks, Penny Stock Newsletters, and Penny Picks.
SNET is one of the hot penny stocks on the Pink Sheets Market these days as a couple of days ago the stock exploded heavily. On Thursday SNET stock pushed through the roof after soaring 730% on a record high trading volume. The stock when skywards after the company announced that it had entered into a purchase agreement to acquire Eldor Property Claims.
It is no secret that the announcement was accompanied by a heavy market awareness campaign which also played a role in the stock explosion.
This Saturday, SNET also announced that it had executed an initial payment pursuant to the acquisition agreement. The announcement came right after a trading session which finished with a significant correction for SNET. On Friday, the stock declined 34% to $0.19 per share on above average volume of 4 million.
Intelimax Media Inc. (IXMD) – Strange as it is, IXMD also seems to have surged on today’s list of promoted companies. For, online databases show that the company was been promoted yesterday afternoon by a stock promoter called Quality Stocks.
The campaign boils down to a short trade alert in which the promoter urges its subscribers to keep an eye on IXMD during the week. According to the trade alert’s disclaimer Quality Stocks would receive $15,000 from IXMD for 90 days of advertising, branding, marketing, investor relations and social media services.
Apparently, IXMD is counting on alternative methods to increase the trading interest towards its stock, as it has been unable to establish a steady flow of trading volume. As it is visible by historic data, IXMD has been generating sporadic trades in the last couple of months with negligible amounts volume.
The last time the company got in touch with the market was on Jul 23 when IXMD announced “significant” upgrades to its proprietary daily fantasy sports and social platform. However, the announcement had an anemic effect on penny stock traders as on the same day only 20 thousand shares of the company’s common stock changed hands on the open market, while IXMD share price jumped 22%.
As of the last trading session IXMD trades at $0.115 per share which renders its market capitalization at $5 million. The company has also established a 52-week trading range between 0.39 and 0.0051.