A Crash, A Bang And A Wallop For Amanasu Techno Holdings Corp (OTCMKTS:ANSU)

Take a quick look at the chart on the right. Have you ever seen anything like that? Well, if you have been following Amanasu Techno Holdings Corp (OTCMKTS:ANSU) for the last couple of days, the answer would probably be “yes”.

Between January and August QuoteMedia has registered one single trade of ANSU‘s shares. It was on June 18 and it didn’t really affect the price. Then, last Friday, the pumpers decided that they want to improve their track records a bit.

Emails started flying around before the opening bell and everyone claimed that they had stayed up all night to find the next big explosion in Pennyland. They said that it was going to be ANSU and they turned out to be right.

Despite the fact that the ticker hadn’t been traded at all during the last months, it opened the last day of last week at around $0.03, made an astonishing run to $0.30 and all this was garnished with a trading volume amounting to around 3.8 million shares.

Lots of people made a quick and profitable trade, were quite happy with the results and settled for a nice weekend. There were others, however, who still believed that the stock could go even higher and they were the ones who cashed in the most since, despite all odds, ANSU continued its unprecedented run on Monday. The opening price was set at $0.33 and within minutes, the ticker was over the $1 per share mark. There was a slight correction which was followed by more upward movement and when the closing bell rang, ANSU was standing at $1.27 per share.

At this point any experienced trader knew what was coming. Penny stocks carry a certain degree of volatility in them and they generally tend to move up and down quickly but a run from virtually nothing all the way up to $1.27, fueled by nothing more than a few emails of optimism, was bound to end in disaster. Sure enough, the slide started yesterday.

After opening the session at $1.235 the ticker did attempt to move higher, but it was quickly crushed by the panic selling that ensued. When the closing bell rang, ANSU was among the biggest losers for the day, registering a volume of 973 thousand shares and losses of around 47%.

This means that the current price of the stock is around $0.66 per share and that, in turn means that the market cap is $31 million. While this is nothing compared to the valuation when the ticker was standing way above the $1 mark, it’s still quite a lot for a venture that has $118 in current assets, a significant amount of debt and no idea if revenues will ever come.

That’s not much of a surprise considering the fact that traders’ attention was drawn to ANSU by none other than the newsletters, but what’s interesting, is the way it was brought onto the scene. The pumpers like to do this sort of thing every now and then. They see that their track records are absolutely packed full of promotions that ended in disaster and, although they generally seem less concern about how badly it all ends up and how many people lose money on their picks, they do understand that a horrific historic performance does affect the credibility somewhat. When the promoters do a pump similar to the one for ANSU, it’s usually free and it gives them the chance of bragging about the results later on. By the looks of it, they are cheering already. Stock Mister, for example, mentioned their glorious success in their email about Interactive Leisure Systems Inc (OTCMKTS:IALS).

The thing is, free or paid, a pump is a pump, and it is bound to end in a catastrophic fall which is why, it doesn’t really matter if the company does look solid or not, an investment remains a risky option as Sanborn Resources Ltd (OTCBB:SANB) and Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII) have shown us over the last couple of days.