The Promotion For Arch Therapeutics Inc (OTCBB:ARTH) Is On Stand-By
We wrote about Arch Therapeutics Inc (OTCBB:ARTH) on Friday and we mentioned that a pump is highly likely considering all the things that are happening around the company. Of course, we had to check how things have been going throughout the weekend.
If you read through our article, you will see that we were expecting to see some promotional action through the domain name arthreport.com that was registered about a week ago. We checked it on Saturday and the only thing that we saw is that the “Coming Soon” message had been removed. As of the time of writing this article, we see the same thing – the domain opens a blank document, but having read through the message boards, we can see that a landing page was briefly online during the weekend. An eagle-eyed investor has even managed to upload a PDF copy of it and having read through the report, we can see that it’s exactly what we were expecting.
The pumpers have apparently hired a publisher named Ian Cooper to write three pages worth of optimistic projections about ARTH and they all sound pretty exciting. The PDF document does not include the link to the full report, which is probably quite a bit longer, but we’re struggling to see how its contents will be different from what we see in the shortened version. Unfortunately, the file above also lacks a disclaimer so we can’t be sure how much money was shed on the report, but having witnessed many campaigns done through landing pages, we can guess that the budget is quite big. Take the pump for Oryon Technologies Inc (OTCMKTS:ORYN) from about a year ago, for example. The scenario was pretty much the same – ORYN had just started trading when the promotion began. The pump was carried out through a similar web page written by a supposedly experienced financial analyst and the total budget disclosed was $3.1 million. His promises were just as bright and the near price target set by him was $2.50 per share. The longer term was above $6 and ORYN did move in the right direction for a little while but it would seem that at around $1.30, the ticker ran out of steam and right now, a year and a bit later, it stands at $0.14.
A more recent example is the $3.6 million promotion for Norstra Energy, Inc (OTCBB:NORX). The pump for them started around the beginning of April and while it did manage to push the ticker to its 52-week high of $2.06 around the beginning of June, the free fall soon started and a couple of weeks later, half of the value was gone. The price projections here are even more optimistic at around $5 per share in the short-term and $25 in the years to come but having written quite a lot of articles about NORX already, we can see that this is probably never going to happen.
The thing with ARTH is, the promotion hasn’t officially started yet and while the landing page was online for a couple of hours, the pumpers seem to be a bit hesitant about the whole thing. We’re still not sure if they are ready to ditch the campaign altogether, but having seen the performance of the promoted tickers above, we’re convinced that if they abandon their plans, they will do ARTH a favor.
And since we mentioned ARTH, themselves, it would appear that they have also had a quick look at our article. In it we wrote that the official address quoted on the Contact page of their websites was a P.O. box in the quiet town of Natick, MA. Right now, just a three days later, the company HQ has been moved about 17 miles to the North-East in Cambridge, MA. This is not a bad thing, but we reckon that a press release informing us about the relocation of the office might have been a good call.
In any case, interest around ARTH seems to be strong and the posts on message boards suggest that a lot of people are eager to play a potential pump and make a quick profit. They should be aware, however, that although so far ARTH have been moving in the right direction, things could easily turn ugly and instead of easy money, they could get some nasty burns, just like the traders who got in on African Copper Corp (OTCBB:ACCS) did on Thursday.
