Raystream, Inc. (OTCMKTS:RAYS) Jumps, Stalls after Wall Street Surfers Email
First promotion in a long while, and it did not go quite well for Raystream, Inc. (OTCMKTS:RAYS), as the ticker burst from triple-zero range to $0.006, only to lose half of its value on heavy selling the next day. When such a thing happens, a promotion is always suspect, and with underpriced tickers like RAYS, even one email is sufficient to cause a great movement. 
Wall Street Surfers moved in on Thursday with a cheerful announcement, and a warning that a Friday’s profit taking could wipe out the gains quickly, which in fact happened. What the new week would offer for RAYS is unknown, but at $0.003, it is still underpriced enough and tickers rarely return to the rock bottom so shortly after a promotion.
Otherwise, RAYS has been sluggish on the press release front, with only an announcement of a change in directors from May 31st. This is the company’s first communication since September last year. To add more to the mystery, RAYS is an incomplete pink sheet filer, which at such a low price has only a marginal effect on the overall high risk.
RAYS is in the business of offering video compression technologies, claiming worldwide distribution. One wonders if the company manages to get a good foothold in a market where video distribution and compression are extremely well developed. Let’s see if the company shares any relevant financial data:
- $288,000 cash as of April 2012
- $1 million total current liabilities
- Zero revenues
- $2.4 million net loss
It seems RAYS is still not on top of the game, still developing its software in a world where others are already making money on such technologies. But a double-zero play is still possible, with wild intra-day swings, so RAYS may stay unusually active in the next few days.
Wall Street Surfers has a relatively small history of past promotions, with an average compensation of $4,000, a small amount usually reserved for one-off mentions, and the RAYS mail was probably sent for no compensation. The Surfers were among those who recommended Aristocrat Group, Corp. (OTCMKTS:ASCC) on April 14th, and the ticker declined markedly afterwards. RAYS moves at a lower range and not make such a dramatic slide, but it is best to stay away unless you can afford the sharp corrections of a double-zero ticker.
