Pulse Beverage Corp. (PINK:PLSB) Hypes It Up, Climbs

Yesterday Pulse Beverage Corp. (PINK:PLSB) saw a considerable increase of trade volume and shifted over 490 thousand shares, bringing the price up 7% to a close of $1.23 per share.

We covered PLSB before, when a stock pump was actively targeting the company. The last promoter email was dated February 1, ending a relatively small-scale campaign that started in late January, when the stock was trading at about $0.70 per share. Since then, PLSB has managed to clamber even higher on the charts, perhaps a bit too fast for its own good, almost doubling in a few short weeks.

PLSB is a company that produces yet another brand of healthy soft drinks. The company is a newcomer to the beverages sector, as it was formerly an exploration enterprise named Darlington Mines up to 2011. Since we last covered the stock, the company has not posted any new official filings and has only come up with some PR, hyping what is described as securing a distributor for one of its products for the territory of Hawaii.

Considering the lack of other considerable material news disclosed in a filing, the two-day surge may look a little too much. Traders on the Internet are speculating that the company has gained sufficient exposure to attract investment fund attention, a notion that looks highly unlikely unless fund managers have developed a taste for stocks that have only recently been targeted by paid pumps. Goldman Small Cap Research were the last to promote PLSB, issuing a so-called ‘research report’ setting a wildly speculative price target of $4.00 and disclosing $8 thousand in compensation for furnishing the report in its disclaimer. NBT Equities Research also disclosed receiving $20 thousand for advertising PLSB over a 12-month period, with the sum paid directly by the company. NBT’s price target was an even more far-fetched $5.50.

PLSB are hoping to sell 2 million crates of their production over 2013. Whether this would happen remains to be seen. What investors have so far are the numbers of the company’s latest financial report for Q3 of 2012, containing the following:

• $235 thousand in cash
• $970 thousand in current liabilities
• $801 thousand in quarterly revenue
• $767 thousand in quarterly net loss

For the period Jan-Sep 2012 the company has managed to record net loss exceeding $2.1 million.

Investors are advised to watch out with OTC penny stocks that have been promoted recently and that may look like they’re on an unstoppable roll. Those often tend to crash just as quickly as they go up.