PennyTrader Keeps Pumping Great China Mania Holdings Inc (OTC:GMEC) For Keeps
Great China Mania Holdings Inc (OTC:GMEC) has been one of the most heavily promoted penny stocks on the OTC marketplace for the last three months or so. The results are visible with the naked eye. All you need to do is cast a glance at GMEC‘s chart performance to reach to the mere conclusion that artificial methods of inflating a stock price is a no go in the long term.
The most intentive stage of the pumping commenced in mid-December when promoters including Cash Money Play and Awesome Penny Pick got the ball rolling. The pump proved successful on day one only. GMEC shares lost 50% within the next seven days or so. However, the second promotional round, which by the way started on Dec. 19, did give GMEC a boost on the charts which continued through early-February. It was at the beginning of this month that the trend went downhill again, thus triggering yet another promotional round.
The main protagonist of the current pump is PennyTrader, i.e the same promoter who got paid $100 thousand to embark on an advertising campaign in favour of GMEC shares in late-January. Four weeks later, it is evident that the pumping effort powered by PennyTrader has yielded quite disapointing results as GMEC‘s market value dwindled from $0.11 to $0.04 per share, which means it has decreased by 65%. Today’s emails might be either a continuation of the hundred-thousand-dollar campaign, or the prelude to a new one. Either way, it is unlikely to help the stock regain its late-January levels.
Yet, those of you who have already acquired a stake in the company might still have a slight chance to score some profits. Thirty minutes into today’s session, GMEC shares are quoted at $0.066 per share, up 29% from their previous close yesterday. At the same time, however, GMEC opened trade at $0.0623 gapping up 22%, which means that if you got in at the open and sold your shares right now, you would end up with a 6% profit – not sufficient enough to make you feel satisfied, yet a positive figure which could prevent you from sinking in the twinkling of an eye. Why? Because that’s what happens to virtually all promoted stocks once the camapign’s initiators have shorted their stakes at your expense.
Considering that PennyTrader continues sending out emails touting GMEC, we could safely assume that the parties staying behind the pump have yet to get rid of their shares in full, so watch out for some major turbulences which could have a detrimental impact on the stock’s current price.
