Punchline Resources, Ltd. (OTC:PUNL) Tries to Claw Its Way Back Up after Pumps
Yesterday Punchline Resources, Ltd. (OTC:PUNL) trumped its record volume and closed the session 57% up. Impressive as that may sound, the stock is currently 90% down from its April 9 price.
The stock was assisted on its way down by a volley of pumps that were launched on April 9, with promoters bagging as much as $66 thousand in compensation for their efforts. The promotion was more or less a classical day-zero disaster, with PUNL closing red on the very first day of pumping, generating humble volume. From that point on it was a downhill blitz on increasingly heavier share volume. The bottom line was that the stock managed to drop from $0.34 to $0.031 in just five sessions.
PUNL managed to pull off two quick press releases as the pumps started, announcing rock sampling procedures and initial geological results and figures. Despite the PR push and the pumps, the stock sank like a stone. After the April 10 drop the company went completely silent, promoters making another half-hearted attempt on the next day, calling the disastrous crash an ‘oversold’ situation, before going under the radar as well.
What has PUNL got under its belt at the present moment? The latest quarterly for the period ended January 31 shows the following:
- $26 thousand in cash
- $340 thousand in current liabilities
- zero revenues since inception
- $49 thousand quarterly net loss, $388 thousand accumulated deficit
PUNL acquired interest in a property against payment of $1.7 million deferred over 4 years and against incurring expenses of $4 million, once again deferred over 4 years, in increasing installments. At the present moment is looks like the company is sitting on a lot of obligations that, if neglected, would lead to losing interest in the property, promises for future potential and not a whole lot more. Adding the pumps that destroyed the share price, yesterday’s 57% climb and the huge volume appear to be more of a desperate spasm.
The promoters at Penny Stock Players who received $66 thousand for touting PUNL previously ran other pumps that ended in the dirt. After promoting Southern Products, Inc. (OTC:SNPD) on March 18, against $72 thousand, Penny Stock Players bailed out and left their subscribers ride SNPD‘s crash.
