The Stock Psycho Pushes Transact Energy Corp. (PINK:TEGY) Uphill
Yesterday morning pumper Stock Psycho issued email alerts for Transact Energy Corp. (PINK:TEGY), also using his alias Darth Trader to tout the stock. After months of trading in miniscule volume, TEGY ran and closed the day 140% up.
The pump sent the stock into shuffling 600 times its average daily volume, touting a “news” release that is actually more than two months old, coming out on Feb 7, presenting it as breaking news. The February portion of TEGY‘s chart shows how excited traders were about it and how many bought on the story. It could be that the pumper hoped his subscribers would either not know how to operate the Headlines page of Yahoo Finance or would simply never bother to check.
Setting the grandiose “news” aside, here is a brief checklist of how TEGY looked like as of the date of its most recent filing – a yearly report for the fiscal year ended December 2012:
- under $50 in cash – check!
- over $2 million in current liabilities – check!
- never generated revenue – check!
- yearly net loss of over $920 thousand – check!
It appears that the millions of dollars of funding that were touted again and again in press releases starting in mid-2012 have not yet made it into the company’s coffers after all. The financial situation of TEGY doesn’t really warrant any further comments, as the numbers speak well enough for themselves.
The Stock Psycho advertised a previous pump he ran on TEGY, back in March of 2012, calling it “something special” and presenting it as a huge success. It was a two-day hit-and-run that deflated quickly, with a day-one price spike that offered all traders with a taste for price chasing a chance to get burned when the price coughed, spat and dropped.
Traders are advised to be extra careful with promoted stocks, even when every now and then the pumpers are as charitable as the Stock Psycho, who offered this one against zero compensation. Do your own research and never trade on recommendations that end up in your inbox.
