Arch Therapeutics Inc (OTCBB:ARTH)’s Ascend Slowed Down

Arch Therapeutics Inc (OTCBB:ARTH) registered its first red session in more than a week yesterday when the ticker closed 2.3% below its Tuesday value. At 1.8 million shares, it also booked the lowest volume since the pump started on Monday, but when it comes to trading value, it’s still up there with some of the most heavily promoted penny stocks like Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII) and Northumberland Resources Inc (OTCMKTS:NHUR). We decided to find out what caused the sudden break in the upward trend.

Unfortunately, apart from a couple of new promotional emails, we could see absolutely nothing that would push the ticker down. Yesterday, a total of three alerts came to our inbox from Five Star Equities, Paragon Report and The Bedford Report (all of them are owned by Providence Media Strategies, LLC, who received $200 thousand for their efforts). They are all word-for-word the same and they all speak about the announcements of new executive officers. That information was published by a press release and through an 8-K filing back on Monday, but still, we suppose that the pumpers wanted to remind us about the exciting developments around ARTH just in case we missed the memo.

Anything else new? Well, apart from the fact that they’re getting more an more coverage, no. We stumbled upon this article published on a website called the Boston Business Journal and just like the emails, it doesn’t really provide shareholders and potential investors with any new information. The $7.3 million funding that they received through the sale of shares to investors (most of which were unnamed) was done back in June and the Form D itself was also published on Monday.

So, with all that in mind, could the red session from yesterday simply be due to the lack of interest from investors? Is the hype over now? If that’s the case, the people who paid around $3 million for the promotion are bitterly disappointed right now. Then again, pumps as expensive as this rarely end up in such a hurry. In addition to this, experience has taught us that the pumped company also jumps in on the bandwagon at one point with a really exciting piece of news to keep the fire going for a little longer.

You can be pretty sure, however, that once it goes out, it will probably go out for good. Why do we think so? Well, we’ve covered ARTH a couple of times already and we spent quite a lot of time researching the company finding red flags around every corner. You only need a quick look at our previous article and you will see exactly what we mean. You will also see that until not that long ago, ARTH went by the name “Almah Inc.”, they were an online auto parts retailer and they were based in Ireland. This reminded us of something.

Those of you who follow penny stocks closely will probably remember Goff Corp (OTCMKTS:GOFF). This is another company that we covered extensively a couple of months ago and the reason for the large number of articles that we wrote on them is the fact that they were the target of one of the most influential pumpers in Pennyland – Awesome Penny Stocks. If you put GOFF and ARTH side by side, you will see quite a lot of similarities. Just like ARTH, GOFF weren’t actively traded before the promotion for them started; just like ARTH, GOFF increased the number of authorized shares and performed a stock split months before the pump started; and just like ARTH, GOFF changed the location of their principal offices around the start of the campaign. Can you guess where GOFF‘s old HQ was? That’s right, Ireland.

Of course, all this might be just a coincidence, but the fact remains that in both cases a lot of emails and hard-mailers were sent and, most importantly, a massive amount of money is involved. While GOFF is already done for, ARTH still has a long way to go. How long is anyone’s guess.