Optical Systems, Capital Resource Alliance, Yasheng ECO-Trade, and Ventana Biotech are being seriously pumped.
If you're impressed by the sudden interest in a handful of micro cap names, you may want to keep reading.... the stock's strength may be artificial. The companies that have been heavily promoted over the last 24 hours include Optical Systems, Inc. (OTC:OPSY), Capital Resource Alliance Inc. (CRRA.OB), Yasheng ECO-Trade Corporation (YASH.OB), and Ventana Biotech Inc. (OTCPK:VNTA).
Let's take a look at each one.
Pink sheet stock Optical Systems, Inc. (OPSY) announced last night they'd hit a huge milestone in their remote CSR (customer service rep) program. The auto dealer software/service provider has now brought 200 CSR's into the fold.
These reps are ultimately sales and marketing folk for Optical Systems; the company believes that once 1000 reps are up and running, it could potentially translate into annual revenue in the $50 million range.
The company may be a little optimistic, but they do have a tangible product...several of them, actually. And, they are being sold at least to some degree.
As for the stock, it's difficult to view this as a long-term play even though the company is real. It's a pink sheet, for one thing, so anything the company says may be difficult or impossible to verify. Even in the short run, a couple of gaps this week are aching to be closed.
Capital Resource Alliance Inc. (CRRA) announced this week it would be acquiring Engineered Construction Solutions Inc. (of Calgary), which also gives them the rights and technology for the so-called 'WonderWall'.... which apparently can withstand hurricanes, earthquakes, etc. It's not a bad idea, and the stock skyrocketed on the news.
The odd part here is the timing. The news came out on Monday, and the stock surged then. Yet, the promotional effort didn't materialize until last night for this morning's trading session.
Though there's been some buying off the pump, it looks like the party's all but over - the promoters just aren't getting traction.... looks like the market recognized that the buying volume faded fast after Monday.
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There was no news from oil/energy company Yasheng ECO-Trade Corporation (YASH) today, which didn't help the promoter's efforts (of which we counted four).
The company itself is a bit of enigma.... forever planning on doing something or developing an idea or negotiating a property, bit never actually finishing anything. It's in something of a development stage, so one would expect a bit of that - there's just an awful lot of it in the case of YASH.
Perhaps we shouldn't be so forgiving though, judging from the quality if the hype designed to induce a purchase of the stock. Check out these two Pulitzer Prize-winning write-ups:
The (deleted) loves YASH - We are going to be profiling this company all next week - we will publish due diligence this weekend which will make you want to buy... YASH is a crazy good stock for members to own....We have never profiled a company that could do the kind of business that YASH is trying to do.And....
They explore and develop undervalued assets. There are in all kinds of areas such as financial, resource exploration, and real estate. This puts YASH in a position to be extremely valuable It pulled back a bit recently - this makes it the perfect time to get into this stock! YASH is at the perfect buy point!Seriously? Here's the sad part though.... the goofy write-ups might actually work. YASH shares have indeed perked up. It might be good for a trade, but nothing you want to hold.
Sometimes, things are crazy enough to work. Ventana Biotech Inc. (VNTA) is in the limelight today because the company - a 'bioscience' outfit working on anti-obesity treatments - announced today they've begin research on stress-suppressing chewing gum.
No, you didn't read that wrong - stress suppressing chewing gum.
Even more stunning.... the company thinks this is a billion dollar opportunity. Maybe it is; maybe it isn't.
As for the stock, the way Ventana shares have edged slightly higher, but not bolted out of control, actually leaves room for an upside move. This one could actually be a short term buy, though gum is no long term investment.
Just to be fair, hiring a promoter isn't always a bad thing, and sometimes the promoter isn't hired at all (though that's a red flag). Often, a promoter simply gives a company an audience they may not have found on their own.... which can get the stock rolling well enough that it continues to gain momentum under its own power.
If the promoter acts more like a 'pumper' though, then you need to watch out - the strength may falter just as soon as the pumping ends.
As for these stocks, we've done the best we could do to delineate the real opportunities and the fake ones, though more due diligence is merited. That said, it's not like we'd never trade a pumped stock - one can make money by riding coat-tails too, you know. It's just that you don't want to be the last one off the train when it rolls to a stop.
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