Even if the pump did not heat SPOW enough over the previous days, yesterday another pump email was sent, telling traders the stock was on the up and up. Sadly, halfway through trading something clicked and after a 7 million volume spike the price went downhill. Minutes before the bell SPOW managed another ugly drop to about 30% under the previous close and 50% under the day's high, but averted complete disaster by closing only 15% down - still pretty horrible, considering pumpers were promising a run up.
The company itself is a dreary venture that has not generated a dime in revenue over the last two years. Here are some sobering figures from SPOW's latest report - their 10-K for the fiscal year ended July 2012:
- ZERO in current assets
- $1 million in current liabilities
- ZERO revenue for all of 2011 and 2012
- net loss of $137 thousand for 2012
With those numbers in mind and considering the fact that there are still millions of shares that those in a privileged position got at $0.001 and can still sell at a huge profit at $0.004, traders may want to take a step back and rethink the situation.
Pumpers VIPPennyStockSite previously ran other fine promotions that allowed their subscribers to lose millions. In late September they pumped Gunther Grant, Inc. (PINK:GNGR) and the stock crashed miserably the day after the pumpers got on board.
Do your own due diligence and don't trust paid pumpers who can try to persuade you to buy just about anything once they pocket their compensation.