Bluforest Inc. (OTCMKTS:BLUF) Crumbles Under Promotional Pressure
It’s just the third day of the pump for Bluforest Inc. (OTCMKTS:BLUF) and the company has already dropped 11% below the starting price of the campaign. Yesterday the stock did an almost exact repeat of the performance from Tuesday – 18% lost and 700 thousand traded shares. BLUF were able to close at $1.33, above the LOD of $1.13. Investors who were unfortunate enough to believe the paid advertisements and joined when the stock was traded for $2 per share have currently lost 30% of their initial investment.
The major newsletters touting BLUF are still as active as ever and the total count of alert emails was bumped up to 73 for just 4 days. Research Driven Investor might be leaving soon though because the three days of service they were hired for are now officially over. They expect to receive a total of $150 thousand as compensation for their efforts. BestDamnPennyStocks and TheBullExhcnage on the other hand might be sticking around with the latter disclosing being paid $200 thousand for a two month coverage of the company.
The measures taken in order to boost the price of BLUF, although for now quite ineffective, go well beyond the usual emails. A full-blown hard mailer consisting of a total of 16 pages has also been distributed among traders. Murphy Analytics LLC. Bagged $6500 to create an initiation report covering the company. And yesterday came the news that Goldman Small Cap Research will also be joining in with yet another report.
That name often crops up here and there among pennystocks. For some time now they have been involved with the biomedical company Nuvilex, Inc. (OTCMKTS:NVLX) issuing a new article almost daily. Such a prolific activity can be easily explained by the $500 they get for each and every published article.
With such and enormous amount of marketing materials some investors are bound to believe the overly-enthusiastic promises. But look no further than the latest financial report to realize how grim BLUF fundamentals really are:
- $43 cash!!!
- $17 210 total current assets
- $3.2 million total current liabilities
- ZERO revenues since inception
- $24 million net loss
Also keep in mind that the only reason the price per share is currently above a dollar are the two revers splits – 1-for-500 in March 2012, and 1-for-30 this January.
It is always best to take what the pumpers say with a grain of salt. Trust only your own due diligence and decide whether the risks aren’t a bit too much.
Even the prolonged Awesome Penny Stock pick – Xumanii, Inc. (OTCMKTS:XUII) is in a state of free fall slashing another 20% of its value and dropping to $0.15. On the other hand Amanasu Techno Holdings Corp (OTCMKTS:ANSU) is still going strong raking in triple digit gains once again currently trading for $1.66.