Anyone with an Eye on Penny Stocks in recent days has seen the steady rise Punchline Resources, Ltd (OTC: PUNL) from a start point of around $0.75 on the 15th of March to recent highs over $1.20 per share.
Right from the beginning the stock traded massive volume and stirred heavy speculation that this was in fact the long awaited next big pick of Stock Market Authority or even AwesomePennyStocks (APS)
While PUNL was initially an enigma we now know exactly who is behind this stock and can make excellent predictions of where it is going based on this information.
PUNL is being promoted by Brighton Markets as well as Bollinger Research which were both entities used to promoted the now infamous Independence Energy Corp (OTC: IDNG)
IDNG started trading in March of this year at a little over $0.50 and rose to highs of well over $4 per share in a historic run marked by massive dollar volume. Then in the beginning of August they did a 12 for 1 forward stock split and tanked the stock while all shareholders shares were locked up in the split in one of the sketchiest moves in recent Penny Stock History.
Investors who bought into the hype on the way up for many dollars per share were whipped out left holding the bag when the stock opened up again at well under a dime. Less the a month after the swift collapse of the disaster IDNG they now bring us PUNL structured and trading much the same way that IDNG did when it first started.
Currently trading at a market valuation of around $60M PUNL has little assets and no revenues to date. While still officially named Punchline Entertainment Inc the Company has made an application to FINRA to change its name to Punchline Resources Ltd
On August 24 in a rather vague announcement PUNL announced that the Company has initiated discussions to potentially acquire interests in one or more gold exploration and development projects in North America and internationally. Then on the 28th of August they announced a $1,000,000 Line of Credit Facility and the PR campaign was officially in full swing.
Conclusion: PUNL and IDNG have many things in common starting with the way the deals were structured and I'm willing to be that PUNL will end up exactly where IDNG did in the end leaving a trail of bag holders in its wake. However in the meantime, PUNL may provide a spectacular trade opportunity. Still just in the very early stages I suspect there is a multi-million dollar promotion to back up this run which could easily catapult PUNL to 2 or 3 times its current levels. Of course nobody knows exactly when the stock will collapse but when it does one does not want to be around.
My suggestion: If you trade PUNL make sure to take your profits early or you could very well lose everything. I will continue to update subscribers on PUNL as this story develops so make sure you are subscribed to OTCMagic.com
OTCMagic.com is quickly becoming the preeminent destination for up to date information on the hottest stocks in Penny stock World
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.