Hokutou Holdings, Inc. (PINK:HKTU) New Pump Falls Flat
On Friday the new round of pumps for Hokutou Holdings, Inc. (PINK:HKTU) finally caused a bit of a stir. After trading in volume greater than all the previous sessions of 2013 combined, HKTU fell on its face and closed over 17% down, at $0.006.
The company started trading actively when the first wave of pump emails came through in late January and early February. Nearly a hundred promotional emails have been dished out since then, compensated with various sums of money ranging from $65 thousand to a modest $2 thousand. The ongoing pumps had two visible moments of heating up, both followed by crashes marked on the chart, with the second crash sending stock price below a penny.
HKTU is a pink sheet company, which means that it’s easy to stay heavy on press release hype and light on official filings. The company had let up on press announcements for a while but came back with more rapid-fire news as the new pumps rolled out on March 6, touting the company’s new supplements intended to help men and women with sexual dysfunctions – news that seems to have helped the stock very little, even combined with the promotions. It also seems HKTU may have the fastest development cycle in recorded human history – the company reported starting work on the female supplement’s formulations in February 2013 and is now allegedly ready to release the finished product.
Traders may be curious how this incredible machine is funded and how it runs, turning to the company’s official filings. HKTU has only provided a single financial debrief in a filing from September 2012. The numbers contained in it are more than a little bothersome:
- $550 cash, comprising total assets
- zero revenue
- $4 thousand net loss incurred from general and administrative expenses
The repeated attempts of stubborn pumpers to lift HKTU stock turned out to have the usual negative effect and the price kept sliding throughout February. In the last round of promotions pumpers Whispers From Wall Street (WFWS) took their usual $5 thousand in compensation. Even though they got on this one late, when it had already crashed twice from previous pumps, they have previously pumped other companies that had much more room to drop, and they did. In late January WFWS pumped Geo Vision International Corp. (PINK:GVIT) and the stock immediately went to crash 50% in several sessions. GVIT is currently about 90% down from the pump’s highs.
Traders are advised to do their own due diligence and research and never trade solely on paid recommendations that they receive in their email. Hype is one thing, actual performance is often quite another.
