Stragenics, Inc. (OTCMKTS:ASAB) Fails To Move Even With A Paid Pump
The stock of Stragenics, Inc. (OTCMKTS:ASAB) is definitely not among the most active tickers out there. In fact, for the month of November it saw quite a few sessions with absolutely no trades while on the days that it did register some trading the daily volumes often remained under 1000 shares.
All that changed last Sunday when we received two email alerts touting the company. For the next three days the emails just kept pouring in with more and more newsletters joining the promotion. This is far from the first time that ASAB has become the target of paid pump. A year ago a pump with a budget of over half a million dollars tried to push the stock up through artificial hype. Well, despite the significant sum of money the results were rather depressing.
This time the disclosed compensations are significantly smaller – Penny Picks, Prepump Sotcks and Penny Stock Newsletters, all three of them are affiliates of Damn Good Penny Picks, pocketed the biggest sum of $20 thousand. The company also tried to lure investors in by publishing a new PR statement early in the morning on Monday. In it ASAB announced the successful acquisition of BakedAmerican.com.
The combination of the press release and the paid pump managed to capture the attention of the market. The problem is that the increased interest in the company did not translate into a positive chart movement. Yesterday the ticker corrected by another 4.7% to $0.18 after traders shifted the record for 2014 amount of nearly 1.3 million shares. During the session the stock dropped even lower to $0.142.
The lackluster chart performance shouldn’t come as a surprise considering the plethora of red flags surrounding the company. Let’s start with the recent acquisition. ASAB plans to monetize the website through advertising, profile placement and merchandising. If you actually open the link to the site though you will be greeted by a nice “coming soon” sign and so far no dates about its launch have been announced. The PR also lacks any information about the terms of deal. We don’t know how much did they pay, and if the payment was made in cash or equity.
We ask this question because ASAB’s latest quarterly report revealed some truly horrendous numbers. At the end of September the company had:
• $2145 cash and total assets!!!
• $3.5 million total liabilities
• ZERO revenues
• $966 thousand net loss
With no new financial agreements being announced it is quite curious how the company managed to complete its acquisition.
And now we come to the paid pump which usually means that some people bought large amounts of discounted shares in the past. ASAB is definitely not an exception and back in 2013 more than 12 million shares came into existence as a conversion of $123 thousand in debt. This means that each share was priced at $0.01 while at the moment the stock is trading at $0.18.
Without the help of the promotion ASAB may once again become extremely thinly traded and all those who believed the pump outfits might find themselves stuck in the company. That is why we always urge you to take the statements of the pumpers with a grain of salt and to never commit to any trades involving pennystocks without doing your own due diligence.
