Pumpers Might Be Rallying The Troops For Arch Therapeutics Inc (OTCBB:ARTH)
Arch Therapeutics Inc (OTCBB:ARTH) finished yesterday’s session around 5% up compared to Wednesday’s close and this means that the total gains since the name was changed amount to around 63%. That’s impressive performance considering the fact that ARTH‘s product is still not ready and especially considering the lack of press releases and stock promotions.
The increased trading and dollar volumes, however, are drawing the attention of people towards the ticker and we find it on numerous “Stocks to Watch Out For” lists. One of them is by Today’s Pick Is and when you read through it, you will see that the people behind the post have compared ARTH to Dimi Telematics International Inc (OTCMKTS:DIMI) and they also say that DIMI reached $2 per share before actually being promoted last year. We got curious and decided to see what happened to DIMI since then and as you can see from their chart, that they’re not doing too well. The effects of the pump were so devastating, in fact, that ticker went from around $2 per share in June to just $0.04 in September.
Unlike most stock promotions, however, the newsletters were relatively inactive and pumping was primarily done through the snail mail and through landing pages similar to the ones we’ve seen for Inscor Inc (OTCMKTS:IOGA) and Cloud Security Corp (OTCBB:CLDS). We wrote about the two campaigns many times and we explained that websites set up for touting the tickers are mostly full of far-fetched claims and conspiracy theories but, nevertheless, they do seem to be affecting the performance of the stocks.
The landing pages for IOGA, CLDS and DIMI were hosted under the domains “iogareport.com”, “cldsreport.com” and “dimireport.com” (now expired), respectively and at this point, you’re probably wondering why we’re telling you all this.
It’s because we got curious, decided to see what will happen if we type “arthreport.com” into the address bar and we were greeted by a “Coming Soon” message. The domain was registered on Sunday, and while we can not be 100% certain that this is the next big pump in Pennyland, we simply can’t think of a reason why anyone would register this particular domain name several days after trading for ARTH started.
All the prerequisites are there, as well. ARTH increased the number of authorized shares and performed a stock split when they changed the name and when the merger was closed, the company issued quite a lot of shares to Arch Therapeutics’ shareholders.
Another thing to consider is Avtar Dhillon’s affiliations with Stevia First Corp (OTCMKTS:STVF) and OncoSec Medical Inc (OTCMKTS:ONCS) – two penny stocks that got pumped just weeks after active trading started and the results were quite catastrophic.
If ARTH‘s shares become the target of a similar campaign, we’re struggling to see how things could end up differently and the reasons to believe that this is exactly what’s going to occur are mounting by the minute.
As for a long-term investment in ARTH, we already wrote yesterday that it’s way too early to call it for sure and just one of the things that disturb is the fact that we can’t even know where their offices are located.
The SEC filings, even the ones published after the acquisition took place, show the Irish address as the location of their headquarters. The contact page on ARTH‘s brand new website, however, gives us a P. O. Box in the quiet town of Natick near Boston, Massachusetts. This is just one more thing to consider before making your decision, but whatever you do, make sure you tread carefully. Unless, of course, you want to end up like the traders who went for Petrosonic Energy Inc (OTCMKTS:PSON). PSON‘s losses from the last couple of days amount to around 46%.
