Mikros Systems Corp. (PINK:MKRS) Round of Free Pumps Deflates
Yesterday Mikros Systems Corp. (PINK:MKRS) closed down over 28% and settled at $0.14 per share. The company went through wild percentile swings up and down after the Monday pumps and it seems the price is still volatile.
A number of promoters including Hero Stocks, Stock Hunter and VIP Stock Alerts, among others, sent a round of pump emails touting MKRS on Monday evening. The disclaimers of the promos stated that this was a benevolent effort that was not compensated with cash or otherwise. Still, the promotions seem to have had the usual effect on the stock. MKRS generated an unprecedented volume, after trading idly over the past few months. On Tuesday the company generated a share volume hundreds of times greater than its average.
The biggest volume was generated early in the day when the stock was still spiking and had not dropped 60% from the daily peak. Yesterday the excitement around the company started cooling down quickly, with a share volume 5 times smaller and a price drop of another 28%.
MKRS are a smaller business doing contract work, often for the military. According to its latest financial report, as of September 2012 the company has some very decent numbers to show, considering it’s an OTC company:
- $871 thousand in cash
- $1.1 million in contract revenue
- $118 thousand in net income
The initiative undertaken by the pumpers has seriously shaken MKRS and while the current pps is still above pre-pump levels, yesterday’s pattern of fading volume and a dropping share price may very well repeat over the next few days, bringing the price where it was on Monday, or even lower.
Whether it’s just pumpers trying to improve their track record of failing paid pumps or not, the promotion has caused great volatility and investors may want to be very cautious with this one.
