Pumpers Knock CES Synergies Inc (OTCBB:CESX) Down
A double-digit drop is something you normally expect to see from OTC tickers that are hovering around or below $0.01. When we’re talking about a stock that is flirting with the $1 mark, most people expect a bit more consistency. We mustn’t forget, however, that we’re talking about the OTC Markets where you should expect the unexpected. When the pumpers are involved, things become even more uncertain. We’ll now take a look at CES Synergies Inc (OTCBB:CESX)’s performance from yesterday in order to explain why.
The first email hit our inbox about an hour and a half before the start of Monday’s session and it was sent by Avi Greenspan who pocketed $20 thousand. Later, Penny Stock Prophet (who received $15 thousand) as well as a few smaller promoters joined the party and as a result, CESX had quite a day on Monday.
Nearly 400 thousand shares changed hands in a matter of six and a half hours which means that the dollar volume at the end of the day was sitting at around $415 thousand. Sadly, instead of pushing CESX in the right direction, the hectic trading made it slip by exactly 3% which meant a close of $0.97 per share.
The pumpers weren’t too bothered about the ticker’s reluctance to move above the $1 mark. After Monday’s closing bell, they sent out some more emails and tried to push CESX up again. This time, their failure was much more spectacular.
The volume wasn’t quite as explosive as the one logged on Monday, but at a little less than $120 thousand, it was still pretty significant. Unfortunately, it did CESX no favors. More than a quarter of the market cap disappeared in a matter of a single session which means that the ticker is now sitting at $0.71 per share.
So, the pumpers struck out with CESX, but was there anything to suggest that they would fail quite as miserably?
It must be said that unlike some of their other picks, CESX is actually a working, revenue-generating company. What’s more, it’s a working company that has made more than a few optimistic announcements over the last few weeks. On September 3, for example, the management team informed us that CESX has been awarded a $438 thousand project in Louisiana which is related to the hurricane Rita and Katrina clean up efforts. Last week, they also said that they have started work on demolishing a 240,000 square foot office building at the Naval Air Station Pensacola.
About a month ago, the management team also announced that they have filed an application for listing the stock on the NASDAQ Capital Market. Apparently, they reckon that their company is solid enough to be traded alongside the big boys and the reason for their optimism lies in part with the results recorded at the end of Q2. Here’s a summary:
- cash: $193,276
- current assets: $4,944,959
- current liabilities: $4,912,618
- quarterly revenues: $5,122,135
- quarterly net loss: $504,492
While not perfect, the results are much better than the ones presented by other promoted OTC companies. Whether they’re good enough to push CESX to a NASDAQ up-listing is for other people to decide.
Whatever happens, CESX showed us over the last two days that the pumpers can break the stocks of even the more solid OTC enterprises. So keeping a lookout for promotions as well as other red flags before investing is absolutely crucial.
