The Stock Psycho Drags GeneLink, Inc. (OTCMKTS:GNLK) Out of Sub-Penny Land
Friday was a good day for GeneLink, Inc. (OTCMKTS:GNLK) shareholders. The stock managed to soar over 500% up by the end of the session, driven by pumps. Sadly, intra-day movement was a trap for people trying to buy on the pump.
Pumper Stock Psycho, also sending out his alerts under the Darth Trader alias, sent a long-winded pump email to his fortunate subscribers two minutes before the open on Friday, touting the perceived merits of GNLK. The only good thing that can possibly be said about the alert was that the Stock Psycho was not paid for this one. This doesn’t mean that the pump was particularly successful as this was a heavily front-loaded deal.
All traders who had not previously bought cheap GNLK shares and decided to ride the pump were looking at a gap up of 140% immediately at the open and had to chase the climbing price. The stock ran up almost 200% further up from the open before starting its rapid descent that left all new entrants to the stock sitting on losses ranging from 50% to 75% by the end of the session.
The pump happened on no recent news from GNLK, touting an event that took place in February and had no positive effect on the price back then. Another part of the pump’s tout was the revenue of the company. Here is a brief look at GNLK‘s financials as per their most recent report, a 10-K for 2012:
- $158 thousand in cash
- $1.8 million current liabilities
- $2.1 million in yearly revenue
- $3.0 million in yearly net loss
Even though the company has been operating for years on end, it’s struggling to turn profit despite its sizable revenues, continuously falling short in those efforts. In 2010 and 2011 GNLK recorded net loss of respectively $2.6 and $3.8 million.
The Stock Psycho brought subscribers other failing picks in the past. One recent example is a promotion he ran on TransAct Energy, Inc. (OTCMKTS:TEGY) on April 18. Those who gotonboard this one also had to chase a climb and then try to scramble out as TEGY took a series of plunges that left it 80% down from the spike of the pump.
Investors are advised to do their own due diligence and never invest in any stock simply because they got an email recommendation in their inbox.
