Wall Street Grand: And the New Promo Victim Is … Flux Power Holdings, Inc. (PINK:FLUX)

Flux Power Holdings, Inc. (PINK:FLUX) is WallStreetGrand’s latest pump job set to take place during the upcoming session today. While penny stocks are susceptible to paid advertising in general, the case with FLUX is somewhat different as the stock is traded at approx. $2.00 per share, which is relatively expensive as compared to the vast majority of pink sheets out there.

A couple of hours ago, we received WSG’s forty-thousand-dollar worth email touting FLUX, powered by third party CMC Ventures. As it is, the company is presented as being “positioned”to become a leading provider of novel and highly efficient lithium-based energy solutions. So far, so good. If only “positioned”meant “established”, though.

While the company in focus really appears to have developed a few lithium-based products and has already generated some revenue, it has a long way to go before occupying one of the leading slots in the industry. Although FLUX‘s assets present the company in a fairly good shape for a penny stock, the company has continually been plagued by

• the $4+ million accumulated deficit and
• the $4.4 million warrant derivative liability

which pose significant challenges before the company’s future as a going concern.

Is today’s promotion necessarily a bad thing for ordinary traders? Yes, without a doubt. Why? The answer lies in the company’s low float of approx. 2.43 million shares. The latter only accounts for 5% of FLUX‘s outstanding stock. What is the current status of those 44+ million shares that complete the equation? Will they not come to light at the least expected moment?

In the light of the facts mentioned above, FLUX seems too overpriced to shift a huge move, be it up or down. It could, hovewer, gap up at the opening, yet it would not necessarily guarantee any profit opportunities. In case you decide on playing with the stock nonetheless, be sure to do your due diligence before taking on too much risk.