The Pump For Vizstar Inc (OTCMKTS:VIZS) Is In Full Swing

Vizstar Inc (OTCMKTS:VIZS) first caught our attention this year when it was featured in quite a big promotional campaign led by Stock Mister. It was not more than a couple of weeks ago, but the pump still managed to push the ticker about 27% below the heights reached while the excitement was still on.

It was not only the emails that were in on the whole campaign, though. While we were doing the research back then we saw that Kimberly Parry who is at the helm of VIZS‘ new subsidiary was invited to an interview for Money TV where she talked about the products and the bright future that is in store for the company. There were also the paid users around forums and message boards who continue to this day to try and tout the stock by spreading optimism around. With all that effort concentrated on a single aim, we expected that they will manage to give the ticker a boost for at least a little while, but it wasn’t to be. So, why is that?

Well, no one is able to say for sure, unfortunately, but there could be a couple of reasons. Someone who is probably not that interested in the skin care products might have decided to ride the wave of excitement and sell their shares at a profit. We mentioned in one of our articles that quite a lot of stock saw the light of day recently while VIZS tried to cover some of the debt.

The other option might be that people simply aren’t interested in companies with a financial statement as dreadful as the one we see from VIZS. As we already noted, as of February 28, they had no cash, $2 million in “investment in preferred stock”, whatever that means, $2.3 million in liabilities and a quarterly net loss amounting to $620 thousand.

Couple that with the fact that even after the slide from the last two weeks, VIZS‘ market cap estimated at yesterday’s close is over $66 million, and you will see that currently, there is little to back up a more prolonged surge in the right direction.

Sure, the announcements that have been going around since the company acquired Kimberly Parry Corporation do sound extremely good. The merger was supposed to finally bring a steady cash flow to a company that has been struggling to find the focus of their operations for so long. So why, then, are there no revenues according to the latest statement?

Unfortunately neither VIZS, nor the pumpers are willing to answer. Instead, VIZS‘s PR department has sprung back to life once again and, as we mentioned in yesterday’s article, the paid newsletters are not far behind.

Minutes before yesterday’s opening bell a new press release came out in which they said that Kimberly Parry are among the few companies chosen to showcase their products at an international gathering called Beauty World in Dubai. We might not be experts in skincare products, but we do know our way around Google Search so we fired it up, looked for the event and, sure enough, we found the website.

The trade fair started yesterday and it’s supposed to end tomorrow. Why on earth didn’t VIZS notify their shareholders about this earlier is beyond us, but here’s one thing that is even more interesting. The website provides a search engine through which you can look up the exhibitors and their products but try as we might, we couldn’t find anything related to Kimberly Parry or VizStar. Of course, this could be just a problem with the website, but we reckon that it’s something to keep in mind while weighing out the risks of a potential investment in VIZS.

Especially considering the fact that a new batch of emails have been sent flying around by pumpers like Stock Hunter. What happens when they’re part of a promotion? The chart for Buyer Group Intl Inc (OTCMKTS:BYRG) illustrates the effects pretty clearly.