Sometimes companies declare that they do not acknowledge the high price amplitudes and the extraordinary activity of their shares.
This always causes different reaction of investors, which sometimes results in increased demand for the company’s stock.
Yesterday, similar to the above mentioned companies, Thwapr Inc (OTC:THWI) in a press release announced that the company “has not authorized nor paid” any stock promotional activities. THWI stated also, that third parties are spreading SPAM e-mails, which may influence negatively the company’s shares.
The question remains, whether stock promotions and sent e-mails powered negatively the shares’ performance, or the dilution supporting stock split from this February just resulted in the saturation of THWI’s market.
The company’s release from yesterday makes an impression that, maybe, only the management of Thwapr Inc remains to believe that a new beta or gamma version terminator may “play games” with the performance of THWI stock.
Investors know and are aware of the fact that any price movement of any stock depends only on market principles.
One of them is that the stock demand is increasing as a result of a stock promotion.
Governed by this rule, in January the promoted THWI stock at least became more volatile than it was before. Another effect was that many new investors at least put THWI on their watch lists. Then, not a new terminator, but a third party named Mohamad Nehmeh paid a not small amount of money to increase investor awareness for THWI.
These days, the rushed once THWI may be rushed much stronger. As you can guess, not a new terminator, but a third party, paid for the just initiated THWI stock promotion. Two stock promoters, OTC Picks and PennyTrader Publisehr, having a solid background in providing investor awareness campaigns, may support the “excessive or volatile trading activity” of THWI, as the company stated.
The ongoing stock promotion may only lift from the bottom THWI on the short-term and then leave it to swim in the calm or stormy waters of the impartial investor judgment. Each of the above mentioned stock promoters is compensated twelve thousand dollars to be not a terminator, but a catalysis for THWI stock.[BANNER]
Another issue is the already mentioned stock split. The approved by FINRA 3:1 forward split of the company’s common stock increases the number of the issued and outstanding common stock of THWI from the amount of 17,445,265 to 52,335,795 shares. Referring to the aforementioned market rules, it is worth to mention that this new huge number of shares may result only in increased trading activity. It may also bring mid-term, or sometimes long-term, shares price decline.
So, while Thwapr Inc is “trying to determine who issued the e-mail”, the market short- and long-term rules, not a terminator, are changing the shares’ price not unexpectedly.
