Smart Holdings Inc (PINK:SMHS) is the supposedly hot new stock on the market – the company recently entered the public scene and is already being presented as an amazing profit opportunity.Thing is, it’s not really that hot or the initial listing price would have been much higher. Currently, there are no reliable records on the new entity’s performance – all we know is that it was a shell company before. Assurance Group Direct, Inc., which currently runs the public SMHS, acquired this shell back in the beginning of 2010 and only recently the company started showing signs of life.[BANNER]
Still, many penny stock newsletters have put this stock on their watch list and because of that the price demand could increase, in turn raising the price. On their behalf, the company recently announced to have finalized agreements with Automotive Assurance Group and to have been approved to sell auto service plans directly to customers.
New entities on the trading list can provide profitable performance for a short period of time. Considering that this stock holds news to it and was made famous by the newsletter providers, the price could appreciate. Based on no fundamentals though, such a rally can only last till there are no more buyers coming in and since there are no fundamentals to refer to for approximate valuation, many will get out, rapidly sinking the price.
