Borislav Tonev

Stubborn Promoters Refuse to Leave Windstream Technolog (OTCMKTS:WSTI) Alone

by Borislav Tonev October 3, 2014

Of course, the risks were huge. The first reports that WSTI published were not really confidence inspiring and the short trading life of the stock meant that it was unpredictable. Some potential, however, was visible.

Then, the pumpers came along and ruined it for everybody.

After making a complete mess of the pump for Imogo Mobile Technologies Corp (OTCMKTS:IMTC), Andy Carpenter and his Wall Street Revelator newsletter unleashed a rather big hard mailer campaign on WSTI. The budget was, reportedly, $900 thousand and the glossy brochure suggested that none other than Elon Musk's Tesla Motors Inc (NASDAQ:TSLA) can somehow benefit from WSTI's products.

The optimistic projections and the lofty price targets that Mr. Carpenter placed on the stock were (and still are) quite a stretch, but despite this, investors believed him and jumped in. The price went up and at one point, it smashed through the $2 per share barrier.

Those who did their due diligence knew that these sort of levels can not be sustained for long. The investors who jumped in simply because of the pumpers' optimistic projections, however, were in for a disappointment. In a matter of just four sessions, WSTI managed to incinerate a whopping 73% of its value.

Predictably, volumes went down after the catastrophic drop and, slowly but surely, the pumpers went quiet. WSTI was left to its own devices, but because the promotion had shattered its credibility, it's performance was far from impressive.

Now though, the pumpers are at it again. Over the last few days, we've seen more and more people saying that they are, once again, receiving the hard mailer brochure with Elon Musk's face on the front cover.

Up until yesterday, the stock wasn't really reacting to the re-pump. If anything, it was losing ground at a rapid rate. Thursday's session, however, ended with 8% in gains and about half an hour after today's opening bell, it's a further 3% up.

Judging by the opinions around the message boards and social networks, lots of people reckon that the second round of pumps will inflate WSTI once again. This might just happen, but we probably don't need to tell you that the run is not likely to last forever.

Investing sums you can't afford to lose could prove disastrous.

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