Daily OTC Markets Preview – Aug 22, 2013
Top Promoted penny Stocks: ETEK, FDFT
Yesterday, the leitmotif of the trading session was the report of the FOMC meeting, which came out in the afternoon. The report showed that central bank members supported the notion of shortening the monetary easing program. They expected that the US economy would improve by the end of the year, which will give green light for the reduction of the $85 billion monthly bond-buying program.
It was this information that caused US stock indexes to sink further down the charts. Thus, the US benchmark indexes added another negative session to their longest sequence of declines since the start of the year.
The OTC Markets followed the mood on the major US Stock markets and posted another significant decrease of 15.85 points, or 1.10 percent, at 1,424.98. Today investors expect information about Initial Jobless Claims to come out which may exert some influence on the stock markets.
Apart from that, the promotional campaigns, which have been initiated since the last closing bell, may additionally affect the OTC Market. Therefore, below we have compiled an overview of the top promoted penny stocks for today:
Eco-Tek Group, Inc. (ETEK) – Today, the promotional pressure on ETEK has intensified, despite the fact that yesterday’s campaign suffered a complete fiasco.
On the last trading session, ETEK stock traded under the influence of a widespread marketing awareness campaign, which had cost $35,000. Although such campaigns are often called pump and dump schemes, in the case of ETEK the pump side was rather short-lived as the stock tanked below the previous close a couple of minutes after the opening bell.
Eventually, ETEK was suffocated by an overwhelming selling pressure which ended with a 41% decline of the stock value. Thus, ETEK closed the session at $0.007 on a twenty times higher than average volume of 9.5 million.
Regardless of this dreadful plunge, the promotion of ETEK continues at full speed today, as another promoter has joined the market awareness campaign. The advertising effort on ETEK today has been helped by Hero Stocks who speculated about the possibility of a rebound, now that the stock was below the 0.10 mark.
For the issuance of this singular newsletter, Hero Stocks had received $80,000 from an anonymous third party. Thus, the intrigue about ETEK is getting more and more complicated, as it is highly uncertain whether investors will support the stock in the forthcoming session after so much common traders were burnt yesterday.
Foodfest International 2000, Inc. (FDFT) – The next heavily promoted stock for today is FDFT. This stock ticker, however, most likely still haunts penny stock traders with nightmares as it has completely wiped out the investments of those traders who betted on the stock when it was first promoted on Monday last week.
On Aug 12, FDFT got a promotion worth $56 thousand which was apparently a mere pump and dump scheme as the stock plunged 58% on the same day. The nightmare, however, didn’t end there as FDFT lost 38% and 31% in the following trading sessions.
Thus, as FDFT traded at $0.083 at the beginning of the promotional campaign, its share price melted down to $0.008 as of the last trading session. In short, if you had invested $10,000 in FDFT stock on Aug 12, the value of your position today would have been $960.
However, despite the fact that FDFT share value has plummeted over 90% in the last two weeks, the company still holds a market cap of $4.7 million. This means that there is still room for FDFT to depreciate, especially now that the stock has become an object of a paid promotion for the second time.
Today, online databases have registered eight promoters touting FDFT. The pump and dump effort had been backed up by ODD Marketing LLC and Microcap Consultant, who had provided a cumulative compensation of $37,500.
Two days ago FDFT announced that Restore Force Inc. continued to experience overall business expansion and revenue growth. However, no official documents were provided to support these claims and the company would hardly file any because, being a Pink Sheet stock, it is not obliged to file with the SEC.