Gediminas Jasionis

CrowdGather Inc (OTC:CRWG) Promotions Get No More Attention

by Gediminas Jasionis July 2, 2010
CRWG_chart.pngPeople with interest in CrowdGather Inc (OTC:CRWG, CRWG message board) failed on the latest attempt to feed its overvalued stock to traders, even though they paid 5,000 dollars for the stock promotion services.

According to the stockpromoters.com, AWT, the undisclosed third party with abbreviation for the name, were the ones to pay the cash to Small Cap Review. This paid effort is yet another one of the many recent attempts to boost the share price.  Though the disclosures may be somewhat lagging, the promotions are obviously failing as the stock didn't move beyond its trading range in the last two months.

drowning_stickmen.jpgPromoter services are usually used when the company cannot pay back the borrowed money and need to raise their stock price for the sponsors to get the invested money back, and possibly make some profit out of it. The same attempts provided traders with the huge stock price volatility in January to February 2010, and surely many hopeful investors lost their money on the sell-off that followed.

The situation is not repeating itself on the current promotion. People seem to have lost interest in the bloated, useful facts empty promotional newsletters with flashy images and unrelated industry information.

Officially, Crowdgather is not the acquisition target of any successful company. Their business is failing, as clearly depicted in the income statements. The proclaimed 4.5 million people visiting their forum aren't eager to use the paid services, which is reflected on the vague sales volume. The company is out of cash and appears heavy leveraged.

As already described on Hotstocked in the past, the business is only suitable for making money from stock sales.

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