The StockTips Pump for Coastal INTGRTD SVCS (OTCMKTS:COLV) Gains Traction
When StockTips announced that their next pick is going to be Coastal Intgrtd Svcs (OTCMKTS:COLV) the initial reaction from the market was overwhelming. In a matter of minutes the majority of the 28 million shares registered during last Monday’s session got traded. The unprecedented interest however didn’t mean a positive outcome of the day – COLV crashed by 28% on that day. On Tuesday another 12.5% were obliterated.
The pump had a disastrous start but for the last three sessions COLV has been making a remarkable recovery. With a gain of more than 25% on Friday the ticker closed the week at $0.131. StockTips and their co-editor Mike Statler were also inspired by the reversal and after a couple of days of silence a new email alert was sent on Friday. The pumper seems to be shifting into a higher gear issuing another tout earlier today. The emails sound extremely encouraging but before you get overly-enthusiastic let us remind you of some rather important facts.
First, StockTips are running a paid pump for the stock with a disclosed budget of $4.5 million. Even if that sum is exaggerated, which is more than likely, they are still being paid to create as much artificial hype around the company as possible. Now, ask yourself the question – Who is going to benefit the most from the sudden increase in interest in a stock that was extremely thinly traded and even often registered sessions with not a single share changing hands?
How about the people who last year received more than 52 million shares at severely discounted prices through the conversion of $52,418 in debt? With each share being priced at $0.001 they stand to gain millions if they unleash their holdings onto the open market.
But let’s return to StockTips. In one of our articles we detailed the fate of some of the previous picks of the pump outfit and in all of the cases the stocks suffered a devastating crash after the promotion came to end. That is why you shouldn’t take the words of Mr. Statler at face value. Not to mention that he is actually not real. The disclaimer at the bottom of the emails clearly states that “Mike Statler is a fictional name” played by an actor who is being “compensated solely on a contract basis for participating in this campaign”.
Even if you disregard the red flags associated with the paid pump completely the risks around COLV remain significant. The latest financial report filed by the company revealed that at the end of March it had $794 in total assets!!!, $256 thousand in total liabilities and ZERO revenues.
If you are determined to trade the stock it is important to regard it solely as a pump play. Set appropriate time horizons for your trades because missing the right moment could leave you scrambling to cover your losses.
