Top Promoted Penny Stocks: WBXU, BLDW
Yesterday, the US benchmark indexes headed upwards after it turned out that the US economy grew at a higher than expected rate. Officially, the revised GDP data for the second quarter 2013 grew at 2.5%, while the market expected a growth rate of 2.1%.
Apart from showing that the US economy is getting better, the good GDP data may also have a bad effect on the markets, as it may raise investors’ fears that the Fed will exit the monetary easing program earlier than planned.
Nevertheless the US benchmark indexes posted decent increases during the last trading session. Unfortunately, the situation on the OTC Markets was completely different yesterday, as the OTCM ADR Index registered its fifth negative trading session in a row. Thus, the index finished 0.24% lower at 1,405.21.
Today, investors are expecting another important economic event, which is the release of the Chicago Manufacturing Index. The Chicago PMI index is followed closely by market speculators, so it is likely to impact the forthcoming trading session.
Apart from that, the OTC Market are also going to be affected by the daily dose of penny stock promotions, which are not very high in number today as we at the end of the trading week:
WebXU, Inc. (WBXU) – The main target of penny stock promoters today is WBXU, a media company that owns and operates a network of consumer branded websites and businesses focused on customer acquisition, e-commerce and mobile media.
The campaign is led by Penny Stock Spy, 007 Stock Chat, Wall Street Buzz and Club Penny Stocks, all of which had been sponsored by ODD Marketing LLC. According to online databases, the campaign had cost $22,500.
The last time WBXU was promoted was on Aug 15. On that day, the trading volume of WBXU stock exploded up to 30 times the monthly average, however the share price dropped down 19% to $0.04 per share.
Since then the share price of WBXU stock has dropped even further and yesterday WBXU registered one of the highest drops in its share price for the last couple of month after falling 39% to $0.022 per share on a higher than average volume of 400 thousand.
The free fall of the stock was facilitated by the fact the it had not received fundamental support by the company since its last promotion. On Aug. 15, WBXU announced a strategic partnership with Intelligent Direct Marketing.
Today, however, it looks like the newly started promotion will try to boost the stock without the help of corporate press releases. However, the chances of WBXU posting a reasonable gain today are reduced by the overall decline of the OTC Markets. In addition, investors speculating with this stocks are facing higher risks the usual, as the company is marked with a limited information sign on the Pink Sheets market delineating its highly speculative nature.
Building Turbines, Inc. (BLDW) – Due to the exceptionally lower promotional activity today we are going to pay attention to a campaign which had cost only $1,500. This modest promotion had been dedicated to BLDW, a company which develops and manufactures “unique” wind turbines.
The campaign is led, on one hand, by Penny Doctor, who disclosed a compensation of $500 by Jason Thompson IR and, on the other hand, by Marketwire Press, who disclosed a compensation of $1,500 but didn’t reveal any third party.
Apart from the promotion, BLDW stock also received a fundamental helping hand from the company today. A couple of hours ago, BLDW announced that through its subsidiary, Green City Planet, it had been awarded its first nearly $1 million lease project. According to the press release, the project included a complete LED lightning retrofit for a five-story office building in Austin TX, as well as the installation of a new solar parking garage.
BLDW stock has been in an up-trend since May this year and during this time its share price has risen from $0.018 per share to $0.056 per share, which is an overall increase of 211%. On the last trading session BLDW share price fell 7% to $0.052 per share on a higher than average volume of 980 thousand.
Today, the stock may rally after the campaign and the press release but the fact that BLDW is a pink sheets company means that investors are facing higher risks when trading with this stock.