The Arch Therapeutics Inc (OTCBB:ARTH) Pump Is Now Officially On

Our first article on Arch Therapeutics Inc (OTCBB:ARTH) was published on June 20 when we saw that there was a lot of movement around the stock which had been traded traded under this ticker symbol for no more than a couple of weeks and if you have a quick look at it, you will see that we were rather perplexed by the fact that all the excitement wasn’t caused by a paid pump. By the time we did our second coverage on ARTH on June 21 our surprise was gone since we managed to find out that a paid promotion was in fact brewing. Now, a couple of weeks later, it is well and truly on.

As we predicted, a landing page was uploaded under the domain arthreport.com and as we expected it’s full of rather far-fetched claims that ARTH‘s product will save millions of lives, render the common bandage we all know and love obsolete and, as a result make a potential investment in this particular ticker totally worth it.

The “report” (a short version of which went online briefly during the third weekend of June) was put together by Mr. Ian Cooper and for his efforts he received $10 thousand. He also writes for a subscription-based newsletter called Speed Retirement System which is run by an entity called Market Authority, Inc. and Market Authority, (for whom we managed to find a very interesting entry on RipoffReport.com) in turn received another $25 thousand. The total promotional budget is expected to consist of $790,000 as well as 2.5 million restricted ARTH shares and it was paid by Advantage Media Corp. Some of it is probably being distributed among newsletters of all shapes and sizes as we speak and the first emails flew into our inbox early this morning.

We must admit that we were expecting the pump to begin sooner, but apparently, our articles and the rumors flying around the message boards about the upcoming campaign might have made the promoters a little bit hesitant about the whole thing. Then again, they might have just wanted to wait for ARTH themselves to put out a press release or two resulting in a greater effect on the performance of the stock. The company responded and since we last wrote about them, they have made a couple of announcements that give shareholders and potential investors absolutely no new information whatsoever. The first one came out on June 26 and it speaks about a merger that was completed which is supposedly going to turn ARTH into a life science company. How is the acquisition going to do that and what significance does it have for the shareholders remains unknown. Then on July 2, they came on the news once again and they said that their Directors and Officers are very experienced but if you have a look through our first three articles, you will probably know that already. In them we wrote about the Chairman of the Board, Dr. Avtar Dhillon’s affiliations with other small cap enterprises like Stevia First Corp (OTCMKTS:STVF) and OncoSec Medical Inc (OTCMKTS:ONCS) who got promoted shortly after active trading began. By the looks of things, ARTH is in for the same treatment, but there is one thing that surprises us – the promotional budget.

Normally when a landing page is used for the purpose of pumping a stock, the money shed on the promotion runs into millions of dollars. This time it’s just $790 thousand and this could mean that the duration of the pumping activity could be a lot less than the one we saw during the campaigns for Inscor Inc (OTCMKTS:IOGA) and Cloud Security Corp (OTCBB:CLDS) (the promotional budgets there amounted to $2 million and $2.5 million, respectively). Then again, the figure quoted in the fine print might grow and break the $1 million mark very soon like we saw in the case of Norstra Energy Inc (OTCMKTS:NORX). There could be a hard mailer campaign similar to the one we saw about Petrosonic Energy Inc (OTCMKTS:PSON) and Biozoom Inc (OTCBB:BIZM) in the pipeline, but the thing that worries us most of all is the fact that the whole touting will probably yield the same results we saw from all the aforementioned campaigns – quite a lot of people losing a vast amount of money. Make sure you tread carefully if you don’t want to be one of the traders licking their wounds when the dust settles.