Recently, RightSmile, Inc. (PINK:RIGH) promised to whiten its shareholders’ teeth for free at their annual meeting in August. If it is the pleasant anticipation of that event that made the market buy yesterday is not known, but until then stock promoters take care for bright smiles on investor faces.The stock surged 77.78% yesterday to a close at $0.0016, which is though still far below the levels of the most successful promoting times. The explosive volume could also not top its previous explosion: 168 million shares were traded. From a technical point of view, the price and volume jumps look impressive and could put an end to the oversold status of the stock.
RightSmile became actively traded in April this year, entering the market with a huge gap up. As by a coincidence, it did not take long for the first stock promotion to be disclosed, which was supposedly not paid for. Since then, numerous investors have been constantly alerted by different websites, one of which warns: ” The information in this website and any newsletters we produce should be viewed just as you would view a TV commercial”, “BE AWARE… Assume that the information about these companies is not trustworthy…” and “BE AWARE…These companies may be on the verge of delisting, bankruptcy and worse.”
Yesterday, investors did not seem to have asked themselves what could be worse, even though that good-natured promoter also discloses the manipulation methods allowing only small cap companies and promoters to realize any profits.
RightSmile also wants to be nice to its shareholders. Foreseeing the huge demand, end of February the authorized number of shares has been increased from 300,000,000 to 1,505,000,000, and some advantage of that has already been taken: more than 570 million shares are now outstanding, which makes a market cap of nearly $1 million. To support this, RightsSmile has to offer $78,370 of assets (from which $47,259 capitalized organization costs) opposed to more than $1.6 million in current liabilities.
Though, after nine years of switching from one industry to another (depending on the current investor mood), the management now has found out what makes revenues: teeth whitening. But instead of doing costly marketing campaigns for the products, why not profit from the free services of stock promoters. As the financials suggest, first of all cash has to be raised. And after all, the boldest shareholders will have in August the unique chance to test RightSmiles’ teeth whitening technology themselves.
Hopefully, the outcome of that weird advertising will be noticeable on an officially filed financial report, not only on RightSmiles’s stock chart.
