Bluforest, Inc. (OTCMKTS:BLUF) Vaults $2, Boosted by Widespread Promotion

Carbon credit trading may be a good environmental idea, but outright promotions work better if you need a previously hybernating penny stock to soar. Thus, Bluforest, Inc. (OTCMKTS:BLUF) perched atop $2, after adding more than 42% on Tuesday on nearly $2 million of buying volumes. The $2 levels were a hurdle for BLUF a month ago, and now a promotion has helped the stock scale the wall. The next few days will show how BLUF fares from now on, and if the promotional efforts will intensify.

This Tuesday, Best Penny Newsletter came in, and caused nearly a million shares to be bought up, after almost negligible volumes for years. Currently, the company is capped at more than $206 million, with 103 million shares outstanding. Let’s see if carbon credits worked well for the company’s bottom line. BLUF has:

• Zero cash

• $17,120 other assets

• $3.2 million total current liabilites

• Zero revenues

• $303 million cumulative loss since inception,

• $442,407 operating loss

• $24 million net loss after losses from share issues to settle debt

It is easily seen that BLUF bit off more than it could chew, accumulating great losses after trying to dig itself out of a hole with new stock issues.

BLUF also has a business model that is not realized yet. The company plans to certify certain land assets proven to absorb a known amount of carbon dioxide. Then, it plans to sell so called carbon footprint offsets to polluting businesses. While we are waiting for this, the $2 levels may go sour.

It’s no wonder BLUF is promoted by a whole retinue of paid pumpers, with a total budget of $395,000 and 26 emails this month, most landing on August 5th. With such a price tag, we may expect the campaign to continue, although this does not always coincide with a rise in price.

Another ticker that we have been tracking for a while is ImageWare Systems, Inc. (OTCMKTS:IWSY), a stock also runnung near the $2 levels, with some fluctuations in a general sideways trend. A promotion also helped IWSY climb, and so far it has held up well, adding press releases to keep up interest. IWSY stands at $2.34 after adding a modest 1.3% on $660,000 dollar volumes.

But we need look no further than RJD Green, Inc. (OTCBB:RJDG), the previous $200,000 promotion of Best Penny Newsletter. This ticker shot up, but went on to crash in just a few short days, wiping out all gains and all prospects of a recent recovery.

A massive promotion is the ultimate red flag, and while a stock could perform awesome feats, the price is usually unstable and it is better to avoid investing unless you can also afford the correction.