Onteco Corp (PINK:ONTC
, ONTC message board
) has been making a lot of long investors happy in the last couple of days. At the beginning of June, ONTC made a bounce at the $0.005 support and just as it started to fell some sort of resistance at $0.013, a couple of trade alerts and a press release helped the stock surge even higher on the chart.
On the last session, ONTC generated a significantly higher trading volume.
With nearly 27 million traded shares, the company exceeded 7 times the daily average. ONTC finished the session at $0.0167 which is 22% higher than the previous close.
Two days ago, the well-known promoters, Hot Otc and Stock Egg, included ONTC in their trade alerts, which pointed to the building momentum. The promoters didn't mention any compensation received, however a couple of other paid promotions
on ONTC could be detected on Tuesday:
- Hot Shot Stocks covered the company in their newsletter for which they had received $500 form an unknown third party.
- A $4000 promotion cam from Insane Stocks who were p[aid by i-Business Group LLC.
- Another $20,010 and 1.2 million restricted shares were spent on a promotion by Hot Stock Cafe.
- Sizzling Hot Stocks issued a promotion of their own for which they had received $2,500.
So, the company was a target of a massive promotional campaign which was apparently the reason of the stock surge. The press release which came form the company yesterday was only a back-up to the campaign, saying that a virtual investor relations company had targeted ONTC as a "top company to watch".
As a result of the joint promotional efforts, ONTC surged about the moving averages which would be generally considered a bullish sign if it wasn't a result of artificial promotional stimulation. Therefore, ONTC will have to prove it has the essence to sustain its current share value after the promotional echo fades away.