Pumpers Try to Drag Hokutou Holdings, Inc. (PINK:HKTU) Out of Sub-Penny Land
Yesterday an old acquaintance of promoters burst on the scene once more – Hokutou Holdings, Inc. (PINK:HKTU) got another round of pumps. Can promoters really teach an old dog new tricks, though?
HKTU is one of the more unfortunate pumps of this year, with over 100 promo emails sent out in the last two and a half months. The en masse pump campaign that started on the last day of January and got the stock trading was hardly successful. After a brief surge and spike, HKTU has been tumbling downhill ever since with just a couple of interruptions.
Now promoters are back, some of them touting imagined chart setups, even though chart analysis for a pumped penny stock is completely useless. If HKTU‘s promotional history and post-pump price performance is not enough to scare everyone away from this one, here is a quick look at the company’s financials as per their only financial report available, dated September 2012:
- $550 in cash, and in total assets
- $29 thousand in current liabilities
- zero revenues
- $4 thousand net loss, comprised of general and administrative expenses
Those figures may give traders the impression that HKTU is nothing more than a shell with zero operations, despite the claims of pumps and PR. Sadly, being a pink sheet company, HKTU doesn’t think it’s necessary to update shareholders on its activity in official filings. This time the pumpers will be facing a very difficult task, as the company has not come up with a new optimistic press release yet, to back the pumps, and considering the sordid promo history of HKTU, it may have a very hard time lifting off again.
The promoters at OTCMagic have a track record that is pretty grim as well. One of their most recent pump jobs was Colorado Gold Mines, Inc. (OTC:CGLD). OTCMagic touted CGLD in early March, after the company had crashed once. The second pump moved up and crashed within a day, leaving everyone who bought during the surge with losses of about 80% as of today.
Traders are advised to be very careful with companies targeted by paid promotions, especially when the same company has been previously hammered by failed pumps. Sub-penny prices are no guarantee for upwards movement and they are still a long way away from triple zeroes.
