A new wave of promotions for American Diversified Holdings Corp. (OTC:ADHC) stock hit the market in the past two days. The latest e-mails were sent yesterday evening, but the share price could not stop falling, crossing the 50-day moving average yesterday.
ADHC continued to move down yesterday and closed the market with a 3.57% decline from the previous close, at $0.0027. The trading volume exceeded 10 million shares, which is below the average for the stock. Now that several support levels have been broken, the lowest for the day being $0.0021, it looks like ADHC could fall back down below $0.002 for a share.
Yet, the promoter will again try to prevent this today, sending additional promo mails on ADHC late in the evening yesterday. The latest newsletters that we received and processed recommend the stock as a possible breakout, unfortunately the technical parameters do not give strong signals that this could be possible without the impact of promotions.
According to the disclaimer of a promoter from this Wednesday, the compensation for the advertising service is $25,000 in cash to be paid by a third part each month for a total of 18 months. That sums up to a large amount of money to be spent on promoting ADHC, suggesting that the paying part might be a large shareholder of the company who might have already taken a benefit from the rise of the share price.
The company is also quite cooperative in that regard, issuing optimistic press releases almost on a daily basis. The last two ones came yesterday and on Wednesday, stating that the company’s recently acquired subsidiary Rebel Networks is offering an ” AFFILIATE MARKETING PROGRAM” for its hosted websites, and that its revenue grew by 26% and customer base grew by 19% over first half of 2010.
