Konared Corp (OTCBB:KRED)’s Ascend Continues, Hard Mailer Rumors Flying Around

The $2.3 million promotion for Konared Corp (OTCBB:KRED) started at the beginning of the year and it seems that it’s going along nicely. Since January 2, the ticker has registered just two red sessions and although the movement was slow at first, it has picked up some speed over the last couple of days.

Thursday and Friday were particularly optimistic when gains exceeded 8% for each of the sessions and the cumulative dollar volume hovers around $6.7 million. Even today, about forty minutes after the opening bell, the ticker is already 6% above last week’s value and it seems like there’s little that could stop it from going further up.

If you take a look at our database, you’ll be somewhat baffled by the relentless run. Yes, there is a multi-million dollar pump running at the moment and there are a couple colorful landing pages, but with no emails to lead to the promotional websites, we can’t imagine that they get a lot of traffic. When you dig a bit further, however, you’ll see that the increased daily gains and the huge trading volumes are not really that surprising.

Rumors of a hard mailer campaign started flying around the message boards last week and today, we can see that some traders have even gone through the trouble of scanning the twenty-page brochure and uploading it to forums and blogs around the Internet.

KRED, willingly or not, also helped keep the fire going. On Friday, they issued a press release saying that they have redesigned the bottles of their beverages and today, they came up with another update, this time informing investors about their distribution plans.

For all the optimism, the majority of people on the message boards and around social media are well aware of the expensive pump job for KRED at the moment and most of them either plan to trade it accordingly, or intent to stay away altogether. There are, however, those who seem convinced that despite the awareness campaign, KRED will manage to go through all the troubles because it’s an operating entity.

Unfortunately, at this point, it’s extremely hard to estimate the chances of success. According to the SEC filings, KRED is generating revenues, but the sales are rapidly declining year-over-year. There’s a substantial net loss and around $640 thousand in working capital deficit. Now that the company is a publicly traded one, they might just be able to pull through, but unfortunately, there can be no guarantees for success.

All in all, the reports for the coming quarters should give us a better outlook on KRED‘s future. In the meantime, traders must be aware of the fact that there are people who can benefit from the $2.3 million promotion. As we mentioned in our previous articles, some investors got around 25 million extremely discounted shares back in 2011. If they decide to unleash their holdings on the open market, KRED will most likely take a massive plunge.

That’s why, treading carefully and timing every move very well is absolutely essential. Especially now, when the pump campaign is in full swing.

Nuvilex Inc (OTCMKTS:NVLX) is another heavily promoted penny stock and like KRED, it too managed to close last week on a positive note. NVLX registered around $3.6 million in dollar volume and the price jumped up by a respectable 17.4%. Solar 3D, Inc. (OTCMKTS:SLTD)’s shareholders weren’t so lucky. SLTD lost nearly a fifth of its market cap in a single day despite the optimistic press releases that have been coming out of the company’s HQ.