Arch Therapeutics Inc (OTCBB:ARTH) Climbs The Charts Once Again
In case you haven’t heard, Arch Therapeutics Inc (OTCBB:ARTH) is being promoted. A landing page was set up which was followed by a few emails and a paper mailer campaign. Apparently however, some people failed to acknowledge that this is nothing more than a pump job and they jumped in. Quite a lot of buying volume ensued and the ticker registered an incredible run reaching as high as $1.36 per share. If you’ve been around penny stock promotions for long enough, you’ll know that pumps tend to bite back and violent backlashes often come without warning. Sure enough, just as everyone was thinking that this is really getting interesting, ARTH took on a completely different course. July 10 and July 11 saw some losses but they were nothing compared to the significant blows that the ticker received during the next couple of days. Last Thursday ended with daily losses of around 18% which meant that at $0.45 per share, ARTH‘s value was standing below the pre-pump figures. Was that the end of that however?
Apparently, it wasn’t. On Friday ARTH registered some minor gains and since then it hasn’t logged a red session. Yesterday, it added a further 5.6% and even today, just half an hour after the opening bell, ARTH is already around 10% above its previous value. We’re not sure if the trend will continue towards the end of the day, but if it does, it will mean that ARTH is making a comeback.
Sure, it’s nothing compared to the violent outbreak that we saw on July 8 and July 9, but it is still a comeback and we’re somewhat baffled by it. We wrote our fair share of ARTH articles and we saw that there were quite a lot of things to suggest that this particular ticker will be used for nothing more than making quite a lot of money by pumping the stock. At least there’s very little to support the opposite.
They couldn’t even be bothered to issue some truly optimistic press release and all they’ve talked about is expanding the team and some of the co-founders delivering lectures in Europe – all things that are hardly indicative of the mountains of cash that the pumpers talk about. Apparently, the lack of announcements means that the newsletters can go on a vacation as well. Either that, or they’re ashamed of ARTH‘s stock performance so far. Whatever the case, the last alert received from The Paragon Report and the rest of Providence Media Strategies LLC’s newsletters is dated July 16. Does this mean that ARTH is currently moving under its own steam? Is the positive sessions from the last couple of days a result of the so-called “organic growth”?
Quite frankly, we doubt it. Looking at the message boards, delayed deliveries of the glossy brochure touting ARTH is a more likely scenario. In any case, pumps this expensive (according to the hard-mailer, the total promotional budget amounts to nearly $3 million) rarely end in such a hurry, but this in no way means that ARTH will ever be able to return to values above the $1 per share mark. If you take a look at another $3 million pump, the one for Sanborn Resources Ltd (OTCBB:SANB), you’ll see that just like ARTH, SANB crashed hard when the heights reached during the peak of the excitement got too much. It did wake up and for a while it managed to regains some of its dignity, but, as we wrote earlier today, the second spike was just as short-lived as the first one and right now, SANB is heading back down. A similar scenario seems likely when speaking about ARTH as well, but the crucial bit is, nobody can predict how high the ticker could go and when the descend will start.
There is of course, a more grim option. As we already wrote, four promoted penny stocks (Eco Trade Corp (OTCMKTS:BOPT), Polar Petroleum Corp (OTCMKTS:POLR), Biozoom Inc (OTCMKTS:BIZM) and Norstra Energy Inc (OTCMKTS:NORX)) received temporary trading suspension orders in the past couple of months. Currently, their shares are exchanged on the Grey Market tier but, as you might have guessed, the price is quite a bit lower than the previous values.
Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII), on the other hand, received the Skulls and Crossbones badge yesterday and while that might not crush the ticker immediately, it will probably have an effect in the long run. Right now, there’s no guarantee that ARTH will manage to avoid such mishaps, which is why you should be extremely careful in case you decide that, after all, the pump is worth playing.
