Free Demo By Darth Trader Sends China Teletech Holding Inc (PINK:CNCT) Flying

China Teletech Holding Inc (PINK:CNCT) erupted yesterday as third parties launched a promotional assault on the stock. In fact, CNCT quickly became the new ten-bagger in pennyland. Will it last long, though?

Apparently, not, for a number of reasons. To begin with, CNCT is a promoted stock, which means that the higher it goes the harder it will fall once the parties involved in the pump have shorted their shares. Judging from the quantum leap of 1000+ percent CNCT did yesterday, that moment has not come yet. The latter in turn hints at a possible massive sell-off during the forthcoming session. That is why, getting in today could end up being a dismal failure for every trader who chooses to do so.

Fundamentalwise, CNCT is much better positioned as compared to a lot of other penny techs. The company raked in more than $8.5 million in revenue for the quarter ended Sep. 30, 2012, while scoring a net working capital in excess of $3 million. The company even closed the quarter at a profit for the third time in a row, which is definitely a highlight of its business model.

In spite of the promising numbers mentioned above, CNCT still has a long way to go before investors take it seriously. And the mere fact that the stock is getting promotional treatment speaks for itself.

The main promoters behind the current pump are the affiliates of the Focus Media Group, i.e Darth Trader and The Stock Psycho to name but a few. Normally, they charge hefty amounts for their services. Now, they are doing it for free as if to demonstrate to new third parties what they are capable of. Regardless of the lack of compensation this time, the pump effort will eventually turn sour one way or another.