Punchline Resources Ltd (OTC:PUNL) Setting New Records

If you have been following Punchline Resources Ltd (OTC:PUNL) for the last week or so, you will probably be aware of what happened to them. If you haven’t, we’re here to tell you.

Up until April 8 things were relatively calm when it comes to trading PUNL shares – the daily volume hovered between 10 thousand and 30 thousand and the price ranged from $0.25 to $0.33 per share. Then the emails started flying around. The first one that we managed to intercept was written by 1-2-3 Stock Alerts and it was sent towards the end of the trading session on April 9. About and hour later PUNL was down around 2% compared to their previous close but that was nothing compared to what happened during the next few days.

The number of promoters who were touting PUNL is absolutely staggering and the amount of money that was spent on the pump is even more astounding. There really was only one way in which this could have ended.

It didn’t take long for the losses to start mounting and for the traders to get annihilated. The term for what happened is known around investors’ circles as “bloodbath” and it does a good job at describing exactly what happened during the next couple of days. By the closing bell of April 11 PUNL was sanding at just $0.09 per share. But more was to come.

Surprisingly for us, the ticker tried to retain some of its dignity by making an impressive run on April 16, but a new crash was inevitable. It came on the next day and the day after that which means that PUNL closed yesterday’s trading session at just $0.017. We broke out the calculator to see how much is that in terms of losses, we punched the numbers and we found that if you have bought PUNL shares as soon as the first email was received, you are now looking at a 95% loss. We’re quite sure that these figures are enough to convince even the biggest optimist that promoted penny stocks are a risky business. Still, some of you are probably thinking and the selling has stopped and that the price simply can’t get any lower than that.

If you think that the ticker has hit the absolute bottom, you should probably check out the chart of Pub Crawl (OTC:PBCW) who got the pump treatment back in December 2012 when they were traded at around $0.20 per share. A few months later they were deep in the sub-penny field and although, they have managed to recover some of the value in the recent weeks, we’re hard pressed to believe that they will ever reach the former glory.

Let’s leave the other companies for a moment and bring our focus back on PUNL. Some of you might be thinking that at the current price PUNL‘s shares are extremely undervalued. After all, their shares changed hands at over $0.25 until about 10 days ago.

If you are one of the people who believe that the price of $0.01 is the bargain of the century, you should probably have a look at PUNL‘s market value. When calculated at yesterday’s close, you will see that at the moment you will need around $856 thousand in order to get hold of all PUNL shares. So, what do you get for your hard earned cash?

Well, you will be the proud owner of a bank account with $26 thousand in it, quite a lot of liabilities, and a company with a crushed reputation and no revenue whatsoever.

Why do we think that PUNL‘s reputation is crushed? Well, you only need to enter their message board on iHub to see that you are greeted with the words “A recidivist pump and dump scam!”. The posts that we read below show that a lot of people share that opinion, but you don’t even need to go that far to see that all the promotions for PUNL have gone terribly, terribly wrong. Their chart and our newsletter database will be more than enough.