Since mid January, an incessant flow of news about Videolocity International, Inc. (PINK:VCTY) occupied financial websites and attracted the attention of many investors. But was there a real reason for the company to boast about or was this sequence of announcements just a part of its promotional scenario?This month, VCTY was the object of one of the most lavish paid promotions of the month. Oceanic Consulting, along with other unknown third parties, have squandered roughly $100 for the services of various groups of promoting websites. The first wave of the campaign hit the emails of investors at the beginning of the year, whereas the second one emerged on Jan. 29. Both waves pushed the price and volume of VCTY stock up for a short while.[BANNER]
Apart from the promotion, the connection of VCTY with Mina Mar Group provides a lot of material for speculations. Investors on iHub imply that both companies are a scam, and their only occupation is brooding over the next possibility for a pump and dump scenario.
From another point of view though, the last financial report of VCTY show that the company is generating reasonable revenues and profits. Moreover, its current market capitalization is $7 million, whereas its total assets are higher than $7 million.
Thus, the signals emitted by VCTY may cause confusion about the driving forces behind the company. On the one hand, VCTY is backed up by its robust financial reports, but on the other its involvement in lavish paid promotions stimulates the proliferation of rumors and speculations.
