The aggressive PR campaign for Simulated Environment Concepts, Inc. (PINK:SMEV
, SMEV message board
) stock can hardly rank among the most successful promo actions this year. Yesterday's two paid promotions for the under $1
stock resulted in a remarkable price drop and intensive short selling.
Compensated by $30,000 per month and 750,000 free trading shares from a third party, yesterday promoters attempted again to pump Simulated Environment Concepts up. As a results, the stock tanked 7.27% to a close of $0.037 and over 106,000 of the 161,600 trading volume was made up by short sellers, that hoped the massive PR would produce some price rally.
Unless the short selling was covered, the rally might thus come as a late reaction, considering the extremely low liquidity of the stock.
Yesterday the company also announced to have received $250,000 in funding and at the same time a post by a forum participant appeared in an investor forum, admiring the company founders' motivation to move the business forward. Interestingly, that same announcement was previously published on another website and that forum participant, obviously a paid promoter as well, has been regularly posting press releases in that manner since the beginning of the year.
Investors recognize the cheap chat room marketing efforts and are apparently not willing to put money into such highly questionable stock. There are no SEC filings whatsoever in the last nine years, and all the information available is controversial. There are remarkable discrepancies even about what exactly the business of Simulated Environment Concepts is. According to their website, they are offering water massage and relaxation products. The company was previously known as 5th Avenue Channel Corp. and provided Internet and television services.