Petrosonic Energy, Inc. (OTCMKTS:PSON) Regains a Bit of Ground

After careening in a free fall for five consecutive sessions and losing nearly half of its price, the stock of Petrosonic Energy, Inc. (OTCMKTS:PSON) finally managed to claw to a stop and shift in higher gear. The stock managed another green close on Friday and emerged back above the $0.40 line, gaining nearly 18%.

For those who have not been following PSON, it’s worth reminding right at the start that earlier this year the company was targeted by a large pump campaign, including email alerts, website landing pages and perhaps most importantly – a printed paper mailer ad.

Included in the campaign was also a paper mailer undersigned by Mr. Tobin Smith – the same Mr. Smith who was discharged from his position at Fox News. As a matter of fact, the news piece describing why Mr. Smith’s contract with the media giant was terminated mentions his participation in the very same pump job on PSON and the first huge crash happened along with this bit of news.

The lengthy tout campaign did give shrewd investors a chance to squeeze a quick profit out of it but the price performance of PSON over the last three months definitely does not look like the “investment opportunity of a lifetime”. The pump crashed hard twice, with the last 5-day red streak being the third major disappointment for shareholders.

Things have not exactly improved dramatically for PSON. Their latest financial report for Q2 of 2013 came out in late August and still contained no revenue or sales figures. Even though the company announced in an early June PR that they launched a new plant that showed they were capable of generating revenues, none of those revenues, assuming they exist, seeped into the quarterly report. Instead, the bottom line for the first six months of 2013 is a net loss of $1.7 million.

While the stock is showing signs of minor recovery and may draw some investors thinking it had bounced, it’s probably worth looking at the fate of a few other pump jobs who were less fortunate and actually found their bottom much lower. One recent example is the rise and fall of Xumanii International Holdings Corp. (OTCMKTS:XUII) who rode a pump campaign that increased the price almost sevenfold but ultimately came thundering down as promoters let go of the ticker, despite their promises of amazing gains and a long-term $2.00 price target.