Daily OTC Markets Preview – Aug 28, 2013
Top Promoted Stocks: PGCX
Yesterday, the US stock markets were swept by another wave of selling pressure, which sent the benchmark indexes further down the charts. Apparently, investors are avoiding risks, as fears of a US military intervention in Syria become more and more plausible.
The Syrian factor has caused an increase of oil and gold prices, which has forced investors to restructure their portfolios, overshadowing the good fundamental news from yesterday. In fact at this stage, US economic news are not having a straightforward impact on benchmark indexes, because good fundamental data may force the Fed to curtail their monetary easing program earlier than expected.
So, with this conjecture at hand, the US stock markets have been charged with a strong corrective impulse which was especially visible yesterday when all the US stock indexes finished deep in the red.
The OTC Markets are following the mood on the higher stock exchanges, as yesterday the OTCM ADR Index declined 1.59%, or 22.77 points, to 1,413.06. Today, there are no major economic events, so the market will continue to be driven by non-fundamental factors.
One of the outside factors which will have an influence on the forthcoming session on the OTC Markets is the promotional activity concerning the securities traded on the OTCQB and Pink Sheets exchanges. Today, we have provided an overview of the most important market awareness campaigns for the forthcoming trading session:
Virtual Sourcing, Inc. (PGCX) – PGCX has been correcting for the last two trading sessions, after the stock formed a double top pattern on the chart.
On Monday PGCX fell 26% to $0.62 per share on a three times higher than average volume of 290 thousand. Yesterday, PGCX continued the downward move after it closed 5% lower at $0.59 per share on a slightly higher than average volume of 100 thousand.
The share price of PGCX has been acting very unstably since the beginning of the week, when the stock value declined 61% in a single trading session, which was followed by a strong rally that pushed the stock to a new 52-week high at $1.10 per share.
The volatility of PGCX stock is most likely produced by the numerous stock promotions and press releases which came out these days concerning PGCX. The market awareness campaign on PGCX this month started on Aug 20. On that day, PGCX exploded as the stock closed 140% higher at $0.38 after reaching an intraday high at $0.59 per share.
On Aug 22, Stock Mister issued a momentum alert on PGCX, after disclosing a compensation of $100,000 provided by M Elliot Media. On the same day, the value of PGCX shares increased by 47% on a huge trading volume of 750 thousand. Thus, having started the last trading week at $0.16 per share, PGCX closed on Friday at $0.84 per share for an overall weekly gain of 425%.
Throughout the week, the company supported its stock with a couple of announcements. First, PGCX announced it had signed a letter of intent to purchase recycler with a potential revenue growth of $9 million. On Thursday, the company announced that its subsidiary, Allied Recycling Corp had finalized a purchase order for its mobile fiberglass disposal equipment unit.
The fundamental support and the unleashed promotional campaign successfully launched the stock last week. However, this week PGCX stock seems to be running out of steam especially given the predominantly bearish mood on the US stock markets.
Yet, PGCX will not give up that easily, as yesterday the company provided another helping hand to its stock in the form of a press release. The news update informed that PGCX was pursuing business opportunities in fiberglass recycling and marketing manufactured products made from recycled fiberglass fibers, other fibers and virgin materials.
Moreover, yesterday after the closing bell penny stock promoters issued another wave of newsletters touting PGCX stock. Disclaimers do not provide any details about the sponsors of the current promotion of the company but it was disclosed that the leaders of the campaign had received a compensation of $35,000.
The promoters who have flooded investors’ inboxes with titles, such as “PGCX is my new hot pick” and “PGCX is on highest alert”, are Damn Good Penny Picks, Penny Stock Newsletters, Prepump Stocks and Penny Picks.
Unfortunately, since the current market conjecture is strongly bearish and the stock has been artificially inflated by promotions for a while, it will not be surprising if PGCX succumbs to the gravity force if the unknown third parties behind the promotion have certain interests in this stock which are in conflict with that of common investors.