Will COASTAL INTGRTD SVCS (OTCMKTS:COLV) Stop Crashing?
Out of the last six sessions the stock of COSTAL INTGRTD SVCS (OTCMKTS:COLV) has closed in the red five times. The only green session had a minimal gain of less than half percent. Yesterday the ticker wiped close to 12% of its value and slid to $0.086 per share. Despite the losses the company still commands a market cap of more than $30 million.
The pump outfit StockTips is continuing to issue unrealistically positive email alerts in an attempt to generate as much artificial hype around COLV as possible. After three weeks of pumping though the emails are having far lesser impact on the movement of the stock. In fact the latest pump email was issued last Friday but it failed to stop the stock from crashing by 10%.
The disclosed budget for the promotion is $4.5 million but StockTips might decide that the pump has run its course and simply disappear. Left on its own COLV will have a hard time maintaining the current share price and even harsher correction could be expected. The company is in a dreadful financial state finishing the quarter ending March 31 with:
• $794 cash and total assets !!!
• $256 thousand total current liabilities
• ZERO revenue
• $19 thousand net loss
Last year COLV issued 52 million shares priced at $0.001 through the conversion of debt. The people who own these shares stood to gain the most from the increased attention towards the stock created by the StockTips pump. And they can continue to reap millions in profits even if the stock drops further down the chart. That however cannot be said for the investors who believed in the words of the fictional co-editor of StockTips Mr. Mike Statler and bought in at the highs of the pump and are still holding their shares.
Playing pumped stocks is always extremely risky. Missing the right moment to walk away could leave you facing massive losses or getting stuck in a highly illiquid stock. COLV is not an exception and prior to the current paid promotion the company saw barely any trading and oftentimes registered session with exactly zero shares changing hands.
