Relentless Pumps Going On For WTV Holdings Inc (PINK:TVTV)
What actions would you take if the business you are in charge of were not doing so well? Would you try to improve it or would you change it altogether? The managers of WhereverTV Broadcasting Corp. (PINK:TVTV) have opted for the latter. TVTV shares have since fallen under promotional siege fairly often. Is this pumping doing the stock any good, though?
Until September 14, the company had been operating under the name of Accelerated Building Concepts Corporation (ABCC). It was on this day that CEO Mark Cavicchia announced ABCC would be redirecting its focus to providing over-the-top programming services as WhereverTV Broadcasting Corporation. Needless to say, there was a substantial reason for this change – the company had turned into a financial blackhole incapable of generating any revenue whatsoever.
Ironically enough, as soon as ABCC became TVTV by acquiring the Delaware-based WhereverTV, Inc., promoters started pumping the stock like there’s no tomorrow. And while the first effort, which occurred on Jan. 24, yielded no results, the one that took place on Mar. 5 did give TVTV shares a 48% boost of their market value. Why are promoters so fiercely pumping this stock?
Pursuant to the share exchange agreement between ABCC, on the one hand, and WhereverTV, Inc., on the other, the equity holders of the latter received a total of 2.67 BILLION shares of common TVTV stock. To make this possible, ABCC had conveniently increased its A/S from 24 million to 3.51 billion the day before. As a result, the WTV holders suddenly took possession of a whopping 76% of TVTV‘s stock.
What would you do if you got a grip on a 2.6+ billion shares all of a sudden? It would be only natural to ride the tidal wave on the charts and sell those in order to rake it in. Since paid pumps are generally organized with the sole purpose of ramping up the momentary market value of a stock, there is simply nothing that could prevent those guys from taking advantage of the promotional wave going on in favour of TVTV. That is why, investors would be much better off erring on the side of caution than falling to the trap.
