Planda Biotechnology, Inc. (OTCMKTS:PLPL) At Peak Promotion
It is always an interesting sign when a ticker graduates from sporadic, choppy trading to a long line of uninterrupted rising. This is how the past month looks for Plandai Biotechnology, Inc. (OTCMKTS:PLPL), and the main reason is the unrolling of a promotional campaign of 26 separate messages. The compensation for this drive is relatively low, $26, but it managed to lift the price 10 times on healthy volumes. At the end of last week, where selling often happens, PLPL added another 32% to 53 cents on unseen volumes and net daily growth. 
PLPL is a food supplement company striving to offer a method of making more bioactive plant extracts, and also has a stake in the energy business by taking up Global Energy Solutions Corporation Limited, acquired by a share exchange. This leaves the final company with the following financial resources: 
- $1.3 million cash
- $8.7 million total assets
- $341,302 total current liabilities
- $131,999 revenues for last quarter of 2012
- $439,306 quarterly net loss
While PLPL seems well-heeled, the stock’s movement from 5 cents to 52 cents recently means sharp corrections may happen no matter what the fundamental business is doing. Another red flag is that PLPL actively uses its promise to deliver herbal treatments, which sound more scientific and promising, but actually gains from selling nuts and avocados from a recently leased African farm.
The last email from May 10th is from HSP Team, the bellwether pumper for this campaign. This means a Monday will be a day of reckoning for this ticker, possibly starting to reverse the trend on profit-taking after the long streak. While PLPL has been a long-term project, it is interesting to see what happens to one-off messages from HSP Team. The pumper took part in one of the latest noisy promotions, that of Enviro-Serv, Inc. (OTCMKTS:EVSV), which shamelessly touted its stock that is nothing more than already depressed ticker TTIN.
While sometimes long rising trends tend to keep where by all accounts they should reverse, it is best to stay away from PLPL unless you can afford the inevitable correction.
