Daily OTC Markets Preview – Aug 21, 2013
Top Promoted Penny Stocks: PGCX, ETEK, LFAP
Yesterday, the major US stock indexes did not finish in the same tone, as speculations about the Fed policy kept dividing investors. Thus, the Dow Jones Industrial Average continued its longest sequence of declines since the start of the year, while S&P and Nasdaq went up during the day.
Yesterday, the OTC Markets were colored in red, as the OTCM ADR index traded below the previous close throughout the whole session and eventually finished 0.23% lower at 1,440.83.
Investors expect that the Fed may give some hint about their plans regarding the monetary stimulus program in a FOMC briefing scheduled at 2:00pm today. If the Fed do provide some guidelines regarding their quantitative easing program, the market may experience a much more intensive trading session than usual.
Besides this influence, the OTC Markets will also be affected by the daily promotional activities regarding the penny stocks traded there. This is why, we are providing an overview of the most notable market awareness programs, which have been started after the last closing bell:
Virtual Sourcing, Inc. (PGCX) – Yesterday, PGCX became one of the top market movers on the Pink Sheets markets after it got featured in a massive promotion which was initiated as soon as the opening bell rang.
Yesterday’s campaign cost $40,000 and was led by several well-known promoting websites. The effect which this campaign exerted on the market was explosive, as PGCX skyrocketed 140% to $0.38 per share on a higher than average volume of 1 million. PGCX also hit an intraday high at $0.59 per share during the day which was 270% higher than the previous close.
Today, the intrigue around PGCX gets more and more incandescent, as the market awareness campaign on the company was joined by the heavy artillery of stock promoters, i.e. Stock Mister. Half an hour after the last closing bell, Stock Mister issued a newsletter headlined “PGCX – Runs 260% from Opening Price Today!”
The fine print at the bottom of the newsletter revealed that Stock Mister had been handsomely compensated for touting PGCX. The promoter had agreed to and expected to receive $100,000 by a third party called M Elliot Media for a 1-day marketing program regarding PGCX.
PGCX, on its part, hasn’t remained idle while its promotion is going on full speed. In this regard, on Saturday, the company issued a press release saying that it had signed a letter of intent to purchase a recycler whose revenue was “on pace to grow more than $9 million this year.”
Eco-Tek Group, Inc. (ETEK) – The next notable promotion for the forthcoming session is dedicated to ETEK. Today, this is the campaign with the highest number of promoters involved. According to online databases more than 12 promoters have taken part in this promotion.
The current advertising effort had been backed up by Cambridge Consultants, who had spent $35,000 to compensate the numerous promoters.
The last time ETEK was promoted was one month ago on July 18. At that time ETEK stock was hovering around $0.40 per share. However, after the promotion, the value of the stock started melting like ice in a hot summer day. Thus at the end of July, ETEK found itself at a new 52-week low at $0.06 per share.
Today, the company also announced that the initial $50,000 order placed by its exclusive distributor in Peru, had been shipped last week. The announcement, however, was unable to stop the dumping which afflicted ETEK at the beginning of today’s trading session.
LifeApps Digital Media Inc. (LFAP) – Today, LFAP sports another promotion in a row. The company has been regularly promoted this month. However, despite the market awareness efforts LFAP stock value has declined 33% during this period.
LFAP had been losing value regardless of the constant flow of fundamental support provided by the company. The last press release issued by LFAP came out on Friday, announcing that the company would attend the PGA expo at the Venetian Hotel in Las Vegas as an exhibitor.
After the announcement, LFAP stock climbed 1.35% to $0.075 per share on a lower than average volume. Alas, in the following trading session LFAP sank down reaching $0.07 per share as of the last closing bell.
No additional press releases have been, issued since Friday, yet the promotional efforts on the company have not ceased. Today, five promoters sponsored by Cream Consulting have issued a trade alert on LFAP for a cumulative compensation of $7,500.