COASTAL INTGRTD SVCS (OTCMKTS:COLV) Crashes On First Day Of Pump
On Sunday the pump outfit StocTips revealed that their newest pick is Coastal Intgrtd Svcs (OTCMKTS:COLV). The promotion has a disclosed budget of $4.5 million, sum that is more than likely quite exaggerated, provided by Laluna Services, LTD, the usual paying party of all StockTips pumps. In our article from yesterday we warned you that all of the pumpers previous picks inevitably suffered disastrous crashes and investors who missed the right moment to sell their shares faced massive losses.
Well, it seems that this time COLV has started to sink to the bottom of the chart from the very first day of the pump. All those who believed the words of Mike Statler, who keep in mind is a “is a fictional name” and that “the actor writing and performing under this name was compensated solely on a contract basis for participating in this campaign”, and decided to rush towards the stock had very little chances to walk away with any gains at all.
COLV did open with a gap up at $0.1401 and in a matter of minutes moved to $0.141 but that is as far as the stock went. It took a step back to $0.125 while the volume began to dry up. An hour before the closing bell though the ticker plunged towards the bottom of the chart and finished the session with a massive loss of 28% at $0.072. Will it manage to recover during today’s trading though?
If StockTips are indeed starting to lose their credibility COLV will have a hard time sustaining even their current share price. The company has some truly atrocious financials finishing the first quarter of the year with:
• $794 cash and total assets !!!
• $256 thousand total current liabilities
• ZERO revenue
• $19 thousand net loss
Back in April COLV did announce that their wholly-owned subsidiary SimplyLids was requested to quote pricing for 2.5 billion of their lids annually. A non-disclosure agreement was even signed with Havi Global Solutions, the party that asked for the quote. However, is this enough to justify COLV’s current market cap of more than $25 million?
Another huge red flag, one that is usually present when a stock is targeted by a paid pump, is the past issuance of severely underpriced shares that could be dumped on the open market thanks to the volumes generated by the artificial hype. COLV is definitely not an exception – in May and June, last year, the company issued a total of 52,418,000 shares as a conversion of debt at a price of $0.001 per share.
Even if StockTips decide to stick with their pick and continue touting it the risks around COLV are simply too big to be underestimated. The disastrous start of the pump should already give you an idea what will happen if you set the wrong time horizons for your trades.
