Alert-Driven ALAS DEFENSE SYS INC (PINK:VDSC) Doubles in Value

While the biggest movements in pennyland are usually attributed to bombastic press releases, paid promotions, or both, this is not always the case and ALAS International Holdings, Inc., f/k/a ALAS DEFENSE SYS INC (PINK:VDSC) is an avid exception to the rule.

Yesterday, VDSC shares closed trade as one of the biggest penny stock gainers out there as they almost doubled in value by going up a whopping 95% on a volume of 59.6 million. Thus, VDSC continued the upward trend it started earlier this month and is currently showing no signs of slowing down. What is it that keeps pushing VDSC up on the charts, though?

Apart from the official shareholder update full of would-be grand affairs lying ahead of the company, there have been no official news whatsoever for a whole month now. Nor have any paid promotions taken place, according to our comprehensive database. Yet, this does not mean that VDSC shares have not been alerted in a number of newsletters for the last few weeks or so. Albeit not being cash-related, however, these alerts appear to be raising the hype about VDSC stock as it has been on a steady surge for the most part. Nevertheless, there are a couple of red flags you should consider before putting your money into VDSC.

To begin with, the company’s grandious plans for the future have a long way to go before becoming a reality. What is more, VDSC does not seem to have the funds required to implement these plans. The latter means that its managers will certainly be seeking ways to attract external capital, including both debt and equity financing. And VDSC‘s sub-penny status will hardly be of any use in trying to negotiate favourable conditions.

Second, the stock has already got dangerously overpriced. On the one hand, the free trade alerts will hardly keep the flame burning forever. On the other hand, VDSC passed into the RSI’s overbought area on Jan. 28 and its chances of staying there longer are slim to none.

Unless you have not invested in VDSC yet, forebearing from doing so would be a wise decision. Should you have already got a stake in it, you will have to rely on positive news. And they had better come sooner rather than later.