US Wireless Online (PINK:UWRL
, UWRL message board
) is picking up an impressive pace of price growth as the business is expanding and a possible merger is announced.
Trading on the pink sheets, the stock wouldn't be so attractive without the press releases to feed the traders. The most recent price rally was ignited on June 29, by a PR stating that US Wireless subsidiary acquired a new building to be used as a recycling facility.
The larger work space should allow them to start recycling larger electronic devices, such as computers and in turn generate larger profits. Too bad the company didn't have any profits in the past altogether.
Shortly after the announcement on the new building acquisition, US Wireless presented a potential merger with VU365, a China based web and casual games designer. Due to the lack of information, the merger is suspicious and the pattern of presenting important news which may actually not be so, reminds of a pump and dump style price manipulation efforts.
US Wireless is not reporting with the SEC since late 2008, so their PRs don't get the backbone of an 8-k filling. The merger is just a speculation at this point altogether. It is strange that they announced it without completing due diligence first, and at the time when the market is already excited.
Previous announcements of merger candidates had little effect on the stock price, even with one of the mergers later going through.
The last time this stock got a similar price move was in February this year. A short lived rally later pointed to nearly 90% price decline over one quarter.