NightCulture Inc (OTCBB:NGHT) Gains Some Attention Without the Pumpers

Back in October NightCulture Inc (OTCBB:NGHT) received the latest in a rather long line of promotional campaigns. According to our database, it involved twenty-three emails worth a total of $73 thousand sent by influential outfits like Premiere Alerts, Phd-Trading and OTC Magic. True to form, NGHT spiked on October 15 when it added around 52% but, in keeping with the tradition, it dropped almost immediately and just three days later, it was pretty much back where it started.

Despite the pumpers’ best efforts, however, they failed to get traders interested. Although the touting ran for a couple of days, the ticker never managed to get above the $200 thousand mark in terms of dollar volume and if you take a look at NGHT‘s performance during the previous campaigns, you will see that there’s definitely a few reasons to stay away when the promoters are involved.

Yesterday, however, traders did anything but stay away. More than 5.6 million shares changed hands, racking up a dollar volume of around $831 thousand. The price spiked during the first minutes of the session hitting an intraday high of $0.18 per share, it remained above the open throughout the day but, just as everyone was hoping for a nice green session, it plummeted during the last few hours and finished the session back where it started – at $0.11. So, what’s all the commotion about?

Fortunately, this time it’s not the pumpers. It’s actually NGHT‘s management team who caused the excitement by issuing a press release just minutes after the opening bell, saying to everyone that the company is in for a rather busy Fall season. Busy might be an understatement – the announcement contains a list of twenty-six events that are supposed to take place in a matter of just forty-four days and they also said that some more concerts are about to be confirmed. According to NGHT‘s CEO, Mr. Michael Long, the season is going to be the busiest in the company’s history and it presents a massive opportunity for generating shareholder value.

Previous press releases also sound optimistic – news of sold out events, new, stronger advertising platforms as well as other pleasant developments hit the wire back in October and looking at the company’s latest financials, we must say that there’s definitely some signs of progress. Here’s a quick rundown of the figures found in the report covering the second quarter of 2013:

• cash: $14 thousand
• current assets: $65 thousand
• current liabilities: $3.8 million
• quarterly revenue: $1.2 million
• operational loss: $22 thousand

It’s clear that the debt is still quite a lot but NGHT have managed to reduce it over the last twelve months. What’s more, the operational loss has been greatly decreased compared to the same period of 2012 and it’s fair to say that if everything goes according to plan, the future 10-Q’s and 10-K’s should look quite a lot better. But what about the share price?

At the moment, this seems to be the stockholders’ biggest worry. The pumpers come charging in every now and then and seem to ruin the reputation of what appears to be a company that is striving to achieve success. With an already extensive history of promotional failures, NGHT might have some trouble luring in investors in the future which, in turn, could render all the progress a bit pointless.

In a best case scenario, the promoters will stay away from NGHT and leave the ticker to its own devices. The possibilities of this happening, however, are really hard to estimate.

NGHT isn’t the only stock performing terribly under the pressure of a paid pump. Pan Global Corp (OTCMKTS:PGLO) started to feel the effects of the $1.1 million promotion yesterday when the ticker plummeted by as much as 33% while the traders who got a bit carried away during the touting for Alkaline Water Company Inc (OTCBB:WTER) are still having a hard time forgetting how disastrously wrong that campaign ended.