Yesterday, pink sheet GS EnviroServices Inc. (PINK:GSEN) made history, albeit with a little help of a promoting agency.
When GSEN published its third 10-Q report for 2011 last Monday, no one seemed to care about the company whose shares had not been traded since Nov. 10. The trade drought with GSEN stock was finally brought to an end yesterday when it literally took the market by storm. Not only did GSEN gain a staggering 1,263% in value, but also it set a new volume record with 1.15 million shares changing hands.
Surprisingly enough, GSEN’s glorious run yesterday had nothing to do with any ground-breaking corporate news. Rather, the company does not appear to have made any significant progress on its wastewater recycling facility in Massachusetts as it has yet to secure the financing needed for the initial construction of the site. Nor is this striking performance related to a recent improvement of GSEN’s financials as it continues to have no assets whatsoever.
What has added fuel to the flames is in fact a free newsletter campaign which defined GSEN stock as a ‘lightning bolt’ no one could stop. The e-mail alert raised substantial doubt that a classical pump-and-dump scheme might be going on. Given the lack of fundamental support, the company’s market reign might turn out to be much more short-lived than its supporters expect.
