The Stock Psycho Brings Proguard Acquisition Corp. (OTCMKTS:PGRD) Back To Life
The stock of Proguard Acquisition Corp. (OTCMKTS:PGRD) had been largely forgotten by the market with almost no trades for some time now. But all that changed in an instant when yesterday the ticker was boosted by a real buying frenzy that led to a close 3250% above the previous session. Such an enormous percentage gain is often seen when dealing with sub-penny stocks but actually PGRD aren’t in that category. On Wednesday they closed at $0.02, yesterday they opened at $0.2 and closed at $0.67. The major reason for the surge and the new-found interest shown in the stock were a couple of email alerts distributed by the Stock Psycho and Darth Trader right after the market opened.
Under the immense buying pressure the stock simply exploded breaking through the 1 dollar mark and reaching just below $2. Unfortunately most of the traded volume happened at these price levels so investors who decided to chase after the stock had very little opportunities to take profits. Despite the amazing close it actually brought heavy losses to traders who didn’t sell in early trading. The pumpers on the other hand must have had the time of their lives selling their 5400 shares at such disproportionately high prices.
It seems that the Stock Psycho and Darth Trader have decided to improve their track record and lately have been staying away from paid promotions. Last week they picked another ticker that was mainly left for dead – The Great American Food Chain, Inc. (OTCMKTS:GAMN). Both newsletters once again offered their services for free. The stock displayed almost the same performance as PGRD making an uncharacteristically high surge in early trading on the first day and crashing down afterwards.
Disregarding its poor stock performance in the last couple of months PGRD have been moving along with their business plan. The company is a Business-to-Business reseller of office and business products and supplies. In June they announced a three-year bid award from Jackson Health System, one of the largest hospitals in the USA which will bring a much needed boost to their financial results. According to the quarterly report for the second quarter of 2013 they had: - $33 thousand cash
- $370 thousand total current assets
- $1.1 million total current liabilities
- $2.7 million net sales
- $117 thousand net loss
The impressive revenues posted by PGRD are actually worse than the ones from the same period last year. The company is trying to reorganize its corporate structure and is striving to create a new unified site for all of its products but so far has been hampered by its negative working capital. In March they did a 30-for-1 reverse split in order to increase the stock’s price per share and thus become more attractive for institutional investors. Ultimately the split failed to create the desired effect.
The momentum behind PGRD might spill into today’s session especially with another round ot touts released just before market open. Yesterday Xumanii, Inc, (OTCMKTS:XUII) reminded investors about itself when it added more than 50% to its value. Even with this impressive run the company is still trading for less than 5 cents, a distant far cry from its previous pump-inflated highs.
