Martin Tsvetkov

China Teletech Holding Inc (PINK:CNCT): The Pump Battle Rages On

by Martin Tsvetkov February 22, 2013
CNCT_chart_Feb_22.pngChina Teletech Holding Inc (PINK:CNCT) hasn't had enough of pumping yet. At least, this is what comes first to our mind as we saw the stock gain another 100% in value yesterday during day two of the collaborative advertising efforts by The Stock Psycho and Darth Trader. What is more, the campaign is expected to continue through the upcoming session as well, judging from the latest batch of promotional emails that hit our mailbox last night.

Ever since CNCT scored an astonishing 1000+ percent on Wednesday, it has found its name featured in a number of investor watchlists advising investors to keep an eye on the stock. So far, the effort is worth it as CNCT somehow managed not to lose momentum adding a further 109% to its value.

0CNCT_logo.jpgAs much as 109% is certainly a huge jump in pennyland, it is nowhere near CNCT's grand step up on Wednesday when it became the latest 10-bagger on the OTC marketplace. In this respect, we would hardly be surprised if CNCT closed today's session at a loss. Why do we think so?

First and foremost, the mere fact that the campaign has managed to keep CNCT on a positive note for two days in a row is something paid promotions rarely achieve in general. Second, the pump job's potential is now dangerously close to being exhausted. Third, a lot of investors will most probably short their stakes pretty much to the detriment of traders who decide to get in from now on. Fourth, the vast majority of risk-averse penny stock traders are no longer willing to take on additional risk, and we all know that the latter grows bigger every minute.

On the other side, CNCT has enjoyed a fairly stable financial condition for the last year or so. Not only has it closed the last few quarters at a profit, but it has also amassed millions of dollars of cash reverses. At this stage, the only thing that could have an adverse impact on the business has to do with the fact that the company's main market, i.e the People's Republic of China, is an overseas one and therefore poses a bigger risk in a number of aspects. So far, however, there have been no worrying indications.

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