Stock Appeal Drags Dragon Capital Group Corp. (PINK:DRGV) Into a Promotional Spree
Stock Appeal’s latest promotional pick pretends to have recently acquired two of China’s top leading providers of mobile Internet apps and business solutions. However, it is not the business itself that has triggered the promotion but its highly volatile chart.
The stock under promotional siege is that of Dragon Capital Group Corp. (PINK:DRGV) and the pump job is only targeted for the current session on the OTC marketplace. The total promotional budget amounts to $15,000 and it is being utilized by Stock Appeal, LLC. The latter used its vast network of affiliates including Hero Stocks, Liquid Pennies, VIP Stock Alerts and Stock Hunter to spread the word on DRGV to hundreds (if not thousands) of investors in pennyland. Is this awareness program doing the stock any good, though?
Yesterday, DRGV shares closed trade at $0.0068 generating a volume of 755 thousand, thus making a quantum leap of 70% as compared to their closing price on Friday. By contrast, DRGV‘s chart movement today has so far proved rather disappointing. Even though DRGV stock gapped up 18% opening the session at $0.008 per share, it briefly peaked at $0.009 before going down to $0.005 in less than two hours of trade, which means that the stock has already written off at least 25% of what it managed to gain yesterday without getting any artificial support.
Considering that there is still a lot of time to go before the session comes to a close, we can safely assume that it could get even worse for DRGV from now on. By the time we are writing this, DRGV‘s daily volume already exceeds 4.4 million and one could only guess what else the people behind the pump scheme have in store for regular market players.
From a financial standpoint, DRGV does not seem to have any trouble facing its short-term payables. The company has also managed to secure a net profit of $202K for the nine-month period ended Sept. 30, 2012, a marked improvement from a net loss of $1.5 million on an annual basis.
Nevertheless, the risky nature of pump jobs is unlikely to leave financially stable companies untouched, which is why, as usual, we would like to focus your attention to the promotional dossiers of the promoters mentioned above to take a gander at what happened with other penny stocks which used to be touted by them.
