Borislav Tonev

Pumpers Are Losing Their Touch, Arch Therapeutics Inc (OTCBB:ARTH) Hits A New 52-Week Low

by Borislav Tonev October 2, 2013
42ARTH.pngThey failed. Miserably. As we mentioned yesterday, a few promotional outfits pocketed some tasty compensations and sent out some emails in an attempt to bring Arch Therapeutics Inc (OTCBB:ARTH, ARTH message board) back to life. The chart on the right shows how deeply unsuccessful their efforts were. But who are the culprits and what exactly did they do?

It would appear that an entity called Mantle Media LLC was compensated $43,500 for an awareness campaign on ARTH. Mantle are proud owners of Stock Runway (SR) who sent out two alerts before the start of yesterday's session. Apparently, the costs for the dissemination of SR's optimism weren't that great since, according to our database, Mantle Media acted as a third party and paid two other pumping outfits, OTC Stock Exchange and Penny Stock Prophet around $35 thousand for their participation.

Penny Stock Circle and the rest of the Global Marketing Media controlled newsletters, on the other hand, got to the source - Advantage Media Corporation, who, as we've already mentioned numerous times, are the people controlling the colossal promotional budget which, according to the fine print located at the end of the hard mailer brochure, amounts to no less than $2.9 million.

A few other, smaller outfits took part as well but, after seeing what ARTH did during the last couple of sessions, they probably wish they hadn't. On Monday the ticker opened at $0.37, made a brief run in the right direction almost reaching $0.40 after which it dropped to $0.34. Yesterday's ride was even choppier. ARTH started at $0.339, fluctuated a lot during the first hour and a half, hit an intraday high of $0.35 but then simply gave up and crumbled. When the closing bell rang, the value was standing at just $0.319. Today, it seems to be the same old story. Just about an hour into the session, ARTH has dropped by another 12% meaning that it's now well under the $0.30 per share mark and there's little to suggest that recovery is just around the corner.

This means that ARTH is becoming just another greasy stain in the promoters' horrific track records. But what are the chances of the ticker coming back to life eventually?

Well, first, they'll need to get rid of the pumpers. Quite a lot of people lost a huge amount of money when the stock crashed from the mind-bending heights achieved thanks to the artificial hype. It currently stands around 80% below the 52-week high achieved less than three months ago and catastrophic falls like this are not easily forgotten. They can scare quite a lot of investors away as well.

Once they have freed themselves from the constant pressure exerted by the pumpers, ARTH can focus on the development of their product, the AC5 hemostasis gel. The emails already explained how revolutionary it is, but the fact remains that it's nowhere near ready. Other companies receiving the promotional treatment tend to issue press release after press release convincing everyone that the pumpers are actually right, but ARTH don't seem too bothered with that. Instead, we have only heard about them taking part in some medical symposiums where they will show how brilliant the AC5 is. The shareholders have absolutely no idea when (and if) the clinical trials will begin and deadlines about the commercialization process can be based on nothing but guesswork.

In any case, even if you do believe that ARTH are going to be successful one day, you need to carefully consider all the risks associated with a potential investment. You can see that the promoters decided to revisit the ticker, but instead of giving it a new lease of life, they just squashed it further. By the looks of things, they're gone now, but is there anything to stop them from coming back again? We'll let you decide.

56NAMG.pngOn the whole, yesterday's session was not particularly good for pumped companies. Nutranomics, Inc. f/k/a Buka Ventures, Inc. (OTCBB:NNRX) continued their descend after Monday's catastrophic crash and North American Oil & Gas Corp (OTCBB:NAMG) (whose chart is starting to look remarkably similar to the one ARTH was showing us during its first days of pumping) dropped below the $1 per share mark.

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