Puget Technologies Inc (OTCMKTS:PUGE) Knocked Down by a Twitter Pump

A few days ago, Puget Technologies Inc (OTCMKTS:PUGE) was suddenly brought back to life. It managed to attract a dollar volume of nearly $200 thousand and it went from less than $0.04 all the way to more than $0.06.

These sort of runs are not really uncommon in Pennyland, but a lot of people were quite confused by PUGE‘s sudden surge because it was done without the help of any press releases, filings, or promotions. And they were about to be even more baffled.

PUGE continued its climb and on Wednesday, it managed to reach the $0.10 per share mark for the first time since January. The volumes were still strong and although the company did come up with a press release after the closing bell on Wednesday, the announcement of a revamped website didn’t really suggest that the ticker deserves that much attention. Yesterday, the pieces of the puzzle fell into place for some people.

About three hours before the start of the session, a Twitter user who goes by the nickname Big Money Mike began tweeting about the stock. It started to look like someone has been loading up on PUGE over the previous days and was preparing to unleash his holdings on the open market. Of course, nobody can say with absolute certainty whether this has indeed happened, but that’s not really that important. What is important is that Big Money Mike’s pump didn’t really work.

In fact, instead of going up like Mr. Mike promised, the ticker crumbled down and lost half of its value in a matter of just six and a half hours.

That shouldn’t come as a surprise to any of his followers, whose number, allegedly, exceeds 2 million. Those who have been around Big Money Mike know painfully well that his picks aren’t among the best performers in Pennyland. In March, for example, he tried to inflate Indo Global Exchange(s) PteLtd (OTCMKTS:IGEX), but in a drop similar to the one displayed by PUGE yesterday, IGEX wiped out more than half of its value on the very first day of the pump. The losses since then amount to exactly 98%.

And it’s not like there was anything to suggest that PUGE‘s performance can be any different. Apart from the revamped website which was announced on Wednesday, the company hasn’t really issued any significant news for months and, as we mentioned in our previous articles, the latest 10-Q doesn’t look like much.

To top it all off, some people were presented with a rather big profit opportunity once the tweets started flying around. Those people received more than 6 million shares at around $0.02 per share several months ago and they had the chance to unload a vast portion of them while investors were listening to Big Money Mike’s promises of wealth and fortune.

Once again, we can’t know for sure whether they have done that, but, again, this doesn’t really matter that much. What is important to learn from PUGE‘s nasty crash is that investing in a penny stock simply because of a few all-capital tweets isn’t really your best bet.

About twenty minutes after today’s opening bell, PUGE is traded at just under $0.04 per share (another 20% in the red).