O2 Secure Wireless Inc (PINK:OTOW) Shots Up 50% Powered by FastMovingStock

The shares of O2 Secure Wireless Inc (PINK:OTOW) soared by a whopping 50% after the company officially introduced its proprietary facial recognition software app compliant with a wide variety of security protocols. Sounds fairly logical, doesn’t it? While the news may have impacted OTOW‘s market value, it is a full-on paid pump campaign that was the real driving force behind OTOW‘s surge yesterday.

Opening at $0.10 per share, OTOW stock enjoyed intense and volatile trade as it peaked at $0.17, creating profit opportunities as high as 70%, and closed trading at $0.15, up 50% from its previous close on Feb. 6. Shifting in excess of 206 thousand shares, OTOW scored its second highest volume for the last six months.

As we mentioned in the beginning, the real reason behind OTOW‘s unusually volatile chart performance yesterday is a paid promotion carried out by Wise Micro Cap Consulting LLC through its wholly-owned subsidiary FastMovingStock. The latter disclosed to have received $4,000 to raise awareness about OTOW stock among investors. So far, the campaign has succeeded in giving OTOW shares a boost. Due to the artificial nature of the pump, however, this upward move won’t last forever. In other words, the stock’s value will certainly fall hard and it is a matter of minutes rather than hours before the trend reverses, so taking measures while there’s still time would be deemed a wise move.

The reason why OTOW is unlikely to withstand the promotional pressure for much longer lies with its dreadful financial state. The company closed the fiscal year ended Sep. 30, 2012 with:

• $9,443 in cash;
• $61K in current assets vs. $803K in current liabilities
• annual net loss of $177 thousand.

Mind you, though, that OTOW performed a 1-for-1000 reverse stock split in December. Two months later, the stock is stuck deep down in pennyland with no prospects of getting higher on the charts. In this respect, the stock will hardly enjoy a better scenario the next time the managers decide on a similar move.

Last but not least, let us not forget how other penny stocks promoted by FastMovingStock performed once the hype was over. Check the promoter’s historical record for your reference. You will certainly come across a lot of penny stock whose prices jumped at first, only to crash down big time in the aftermath.