Daily OTC Markets Preview – Aug 29, 2013
Top Promoted Stocks: AFFW, MFST
Yesterday the US benchmark indexes finished the trading session on higher ground, as investors were cashing in profits from short positions. The ascension of the US stock markets happened despite the weaker than expected Pending Home Sales data. In fact, the profit taking impulse of shorters prevailed on the last trading session because investors are preparing for an influx of liquidity, now that the summer vacation season is about to end.
OTC Markets, however, are following a pattern of their own, as theyhave not been following the general market mood for the last couple of days. Thus, although the US benchmark indexes climbed up yesterday, the OTCM ADR Index continued its decline, closing the trading session 4.50 points, or 0.32 percent, lower at 1,408.56 points.
The reason why the OTC Markets did not replicate the rally of the US stock markets hides in the fact that it is usually more difficult for common investors to open short positions in penny stocks. Thus, most of the penny stock market movers were colored in red yesterday.
Today, investors are expecting the US GDP data which will play a major role in forming the mood on the forthcoming trading session. Apart from that the OTC Markets will also be affected by the newly issued promotional campaigns, the most important of which we are going to examine below:
Affinity Mediaworks Corp. (AFFW) – The highest paid promotion for the day is dedicated to AFFW. The campaign is led by Hot Stock Ace Publisher and Stock Cabin. According to online databases the two promoters have received a total of $85,000 for their service.
AFFW hasn’t been trading long on the penny stock markets. Its stock ticker began showing signs of life in July when it managed to surge from $0.03 to $0.30 per share. Unfortunately, the exaltation of AFFW was a short-lived one, as the stock started declining after the monthly peak.
AFFW lost so much value during the last couple of weeks that at the end of the last trading session the stock found itself back to the bottom. As of the last trading session, AFFW shares cost $0.36, after the stock fell 28% on a higher than average trading volume of 1.5 million.
In fact, the decline of the stock was aggravated this week when AFFW appeared in another buch of promotional newsletters. The campaign under question, was initiated on Sunday and had its effect unfolded on Monday’s trading session.
On that day, AFFW stock declined 48% on a trading volume of 3.2 million, which is more than 30 times higher than the monthly average. In fact, the campaign seems to be an undercover pump and dump scheme as penny stock speculators saw an unprecedented amount of shares of AFFW stock being dumped on the open market this week.
Thus, AFFW kept declining on Tuesday and Wednesday as well, losing 29% and 28% of its value respectively. The cumulative decline of AFFW stock value for the last three days of the week sums up to 73%.
In order to buffer the avalanche of sales orders for AFFY stock, the company issued a press release today, announcing its immediate operational capabilities to provide treatment to patients with cancer, diabetes, rheumatoid arthritis and other illnesses via its clinical networks of more than 300 physicians in over 20 countries.
However, there is a brand new promotional wave on AFFY preparing to hit the market today, which is very likely to hide a “conflict of interests” that may additionally increase the selling pressure on the stocks, regardless of the fundamental support provided by the company.
Medifirst Solutions Inc. (MFST) – MFST is another heavily promoted penny stock for today. The campaign on MFST is led by David Cohen who had been compensated $50,000 by ACN LLC.
The company has not been promoted since May 2, so the new promotion initiated by David Cohen has a higher chance of bringing heavy trading volume towards MFST stock today.
MFST stock, on its part, has been sliding in a trading range for the last three months without exhibiting any unusual volatility during this time. Today, however, the market awareness campaign may force the stock out of its trading channel but since this is a paid promotion, carrying a conflict of interests, the stock may not perform according to common investors’ expectations.
At the same time, along with the artificial influence of the newsletter campaign, today MFST has also received a helping hand from the company, which announced that MFST would begin offering its LED Botanical Light Therapy in its new Boca Raton, Florida office.