The Awareness Campaign for The Guitammer Company (OTC:GTMM) Continues
Quality Stocks (QS) started their previous promotion for The Guitammer Company (OTC:GTMM) back at the beginning of March and, though the compensation that received for their emails was significant ($7,500) the excitement that they tried to create didn’t really affect the stock all that much. Some people were probably cheering when the stock remained relatively calm while others were quite underwhelmed.
The people who were happy to see GTMM remain stable were, of course, the long-term shareholders. We have all seen promoted penny stock companies crash when quite a lot of people start selling quite a lot of shares and GTMM have been there before. Back at the beginning of November 2012 they got pumped and they scored a massive run reaching their 52-week high, but soon after that the ticker took a tumble and it settled for a more acceptable value.
This time that didn’t happen which, in turn, left the daily traders who were hoping for a quick profit rather disappointed. Yesterday we received another email from Quality Stocks and this time it seems to be a new campaign altogether. The disclaimer says that QS have received an even bigger compensation this time – $19 thousand – and it also reveals that their effort this time will last for no less than 60 days. We’re sure that the people behind the newsletter are hoping for a better result this time and the daily traders will be sure to keep an eye for opportunities for a profit.
One thing that we’re not certain about, however, is how this will affect the long-term performance of the stock. And if we look through some of Quality Stocks’ previous picks, we will see that, more often than not, the effect of the raised awareness is not exactly brilliant. Take Rainbow Coral Corp (OTC:RBCC), for example. They were featured in a promotional email by QS back on February 10 and, as you can see from the chart on the right, this didn’t really stop the free fall. In fact, since the alert, RBCC‘s shares have lost around 55% of their price which, you would agree, is quite a lot for no more than a couple of months.
Having that in mind, we’re not sure why GTMM‘s management team decided to hire Quality Stocks for the promotion. What’s even more puzzling is the fact that they are willing to be featured in such a campaign at all. Everyone who’s been interested in penny stocks knows that failed pumps are an extreme blow to the reputation of the company and many ventures struggle to recover from the crashes that most often ensue as soon as the excitement is over.
Nevertheless, GTMM spend a total of $26,500 for the promotion of their stock. Having in mind the number of people posting optimistic opinions on message boards, this figure might be even bigger and we can’t help but think that this is not the best way to spend the company budget. Especially having in mind the fact that, while their products do seem to be interesting and the general public does seem to like them, GTMM have not generated a single penny in profit ever since the beginning and, as we wrote in our previous article, they have incurred some serious losses.
We’re pretty sure that the people who have trusted them with their money, the long term shareholders, would have been a lot happier seeing the $26,500 being invested in things like marketing and optimizing the manufacturing process. Still, all they can do now is hope that this promotion will not result in a crash and keep their fingers crossed that in the future, GTMM‘s management team will understand that their shareholders’ value is much more important than the interest in the stock.
