Alkame Holdings, Inc. (OTCMKTS:ALKM) Flies Higher Thanks to Pump

Yesterday Alkame Holdings, Inc. (OTCMKTS:ALKM, ALKM message board) issued a PR announcing yet another expansion of their distribution network. This time the company signed an agreement with Senuca Beverages, Inc who are going to distribute ALKM’s bottled water through the Northern California region. The news didn’t go unnoticed and at the end of the trading session the stock of the company had risen by nearly 18% and stood at $0.46. Over 8.3 million shares changed hands resulting in a dollar value of $3.6 million.

The problem is that there is another reason for the impressive results posted not only yesterday but for the past two weeks – ALKM has been touted by a $4.6 million paid pump. The promotional campaign has been carried out by the notorious pumper StockTips and they have been sending out email alerts almost daily. This is far from the first pump headed by StockTips though and their past results are far from encouraging.

Well Power, Inc. (OTCMKTS:WPWR) reached a pumped high of $0.80 while at the moment they are trading at less than 5 cents. Tiger Oil and Energy Inc (OTCMKTS:TGRO) were pushed to a high of $1.59 but since then have dropped by over 92% to less than 10 cents. But Pingify International Inc (OTCMKTS:PGFY) suffered an even worse fate when the company got suspended by the Securities and Exchange Commission just days after StockTips began pumping them.

Some may argue that ALKM have a real product and solid revenue-generating operations so they may avoid the wrath of the SEC but the question is will they be able to support the current price of their stock without the help of the pumpers? In order to answer this question we have to go back by just 5 months. Back in May ALKM were trading at prices above a dollar thanks to another pump campaign- an entity called Wall Street Giants was managing a production budget of $1.5 million. In the aftermath of this pump ALKM was crushed to the ground dropping below 10 cents per share in just a couple of months.

If you time your investment correctly the pump could provide opportunities for some quick gains. If you miss the moment though the losses could be devastating. That is why it is of vital importance to weigh all the risks around the stock before putting any money on the line.