Data Call Technologies, Inc. (OTCMKTS:DCLT) Explodes Thanks To Social Media Pump

Data Call Technologies, Inc. (OTCMKTS:DCLT) has been flying under investors’ radars for quite a while. The ticker has been extremely thinly traded and on some occasions it even had sessions with absolutely no trades. The daily traded volume for Tuesday stood at a little more than 500 thousand shares while the corresponding dollar value reached the measly $2730.

Yesterday’s trading seemed to be no different and for the most of the session DCLT remained flat on minimal interest. A couple of hours before the closing bell though investors suddenly rushed towards the company. The stock shot up in an instant and climbed to $0.0132, just short of its 52-week high of $0.0137. Such valuations proved to be short-lived and DCLT quickly slumped back down. Still, when the session came to an end the stock was sitting at $0.0075, 50% higher than its previous close. As a whole the massive number of 47.1 million shares got exchanged which is nearly half of the 100 million float.

There was no immediately obvious reason for the drastic change in investors sentiment. Data Call’s last PR announcement was published on November 10 and although positive it failed to influence the movement of the stock. In fact, on that day DCLT crashed by more than 26%. The latest SEC filing is the quarterly report for the period ending September 30 but it too was submitted at the start of November.

After a bit of digging around we found out that DCLT has been announced as the new pick of BigInvestment Group, LLC and Silk Dynasty Stocks. The pump didn’t employ the usual email alerts but instead used the social media platforms with a combination of Facebook posts and twitter messages. The risks associated with playing a pumped stock remain the same though. The artificial hype may create short-term spike in awareness but if investors miss the right timing to exit their positions they might be left holding the bag.

At least DCLT’s operations seem to be a lot more stable than the majority of the pennystock companies. For the third quarter of the year the company reported the following financial results:

• $33 thousand cash
• $133 thousand total current assets
• $122 thousand total current liabilities
• $166 thousand revenues
• $84 thousand net loss

The numbers may not be that impressive but the balance sheet looks solid. During the nine months since the start of the year the total liabilities of the company had been reduced by more than 50%. At the same time revenues remain comparable to the results from the same quarter last year. Another hugely positive fact is the absence of any toxic funders.

The ongoing promotion turns the stock of DCLT into a risky choice for investment. If you are determined to trade the stock be sure to do your own research before putting any money on the line.