Borislav Tonev

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

by Borislav Tonev October 3, 2014

Finding a decent company on the OTC Markets could be a tall order sometimes. There are literally hundreds of enterprises that promise a lot, but deliver on nothing. Business plans and ticker symbols are changed every day and we sometimes see lorryloads of money go down the drain in a matter of minutes. When Windstream Technolog (OTCMKTS:WSTI, WSTI message board) popped up onto the scene a couple of months ago, it looked like it's one of the more promising ventures out there.

It went public through a reverse merger which is something of a red flag, but it did have a solid business plan and unlike other penny stocks that tend to be overly optimistic in their press releases, WSTI were publishing actual photographs of actual people assembling actual products. Believe it or not, this is something of a rarity.

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.

Comments 2

1. Guest
May 31, 2015, 09:25AM

Quotes we are coming after you...
https://www.linkedin.com/pulse/bigger-than-madoff-secs-systematic-microcap-genocide-dennis-o-neill

2. Guest
December 01, 2014, 09:41AM

Quotes WOW. this is coming from a guy that looks like he just hit puberty. more blatant attacks by theses out and out criminals. I glad he put his name on the article now we can track him. scumbag

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