Life Stem Genetics Inc (OTCBB:LIFS) Seems Relentless

“Consistent growth”, “sustained upward trend”, “few red sessions” – all notions that you rarely associate with penny stocks. Yet, a company called Life Stem Genetics Inc (OTCBB:LIFS) has achieved just that. So, how did they do it?

Was it the clever technology that they possess? Was it a promising piece of news? Or was it a new financial statement? While the first two factors might have played a small role, the really big reason for LIFS‘ relentless climb is the rather expensive promotion that is currently running for them.

As we mentioned in our previous articles, the whole thing started back in October when LIFS‘ management team decided that what the stock needs at the moment is some awareness. Considering the fact that according to the latest financial statement, LIFS‘ total assets amount to less than $200, we tend to disagree, but then again, who are we to judge?

The company paid Contrarian Press (CP) $300 thousand for a report that contains lots of forward-looking statements and a rather comical price target. An unnamed third party thought that more investors should hear about LIFS which is why they called Eclipse Media Group and paid them $1.78 million in exchange for a landing page that consists of nothing more than a copy of CP’s optimistic report.

On Wednesday, StockPalooza joined the party. They received $35 thousand from a third party called Laurel Investing and sent out a couple of alerts through the email. Contrarian Press informed us today that they are preparing a very special, updated version of their report which will be available to their paid subscribers only and we’re even hearing rumors about glossy brochures flying around the snail mail. All in all, it’s fair to say that the pump is picking up speed.

LIFS, themselves, willingly or not, are lending a hand. A couple of letters of intent, some new additions to the management team and a private placement were announced in the recent weeks and the chart at the beginning of the article shows that the combined efforts from the company and the pumpers are working a treat.

Not only has the price grown, but we can see that much more people are now interested in the ticker. Yesterday’s trading, for example, was absolutely intense. LIFS closed the session only 4% above its previous value but it managed to breach the $1.50 per share mark and all that while shifting around $1.9 million worth of shares. Some of the people who have fallen for the pumpers’ bright promises are probably waiting for an even more explosive run in the coming days, but we reckon that things are now starting to get a little scary.

The market cap at yesterday’s close, for example, stands at over $67 million and that is quite a lot of money for a company that has no revenue in its financial statement and only $192 in the bank. While the private placement might give them some room to breathe, considering the scale of investments needed in the stem cell sector, they will probably burn through the cash quite quickly.

And since we mentioned LIFS‘ financial situation, we should point out that an NT 10-Q came out today informing us that they failed to publish the report for the quarter ended September 30 on time. Apparently, it should be out within the next five days and we’re quite sure that a lot of people are expecting it. It will give investors some more up-to-date information and will present us with a clearer picture of where the company’s heading, but it won’t stop the pump which should be your main cause for concern at the moment.

The chart on the right belongs to Endeavor IP Inc (OTCBB:ENIP) – a ticker that is also the target of a $1 million pump. As you can see, until Tuesday, everything was going along pretty well, but two massive blows slashed the price by a quarter. Currently, there is not much to suggest that LIFS will manage to avoid a similar drop.