A5 Laboratories Inc (OTC:AFLB) closed up with a 28% gain on the share price on Wednesday after the stock corrected up from a recent plunge. The bounce was not without a questionable promotion, made by WhisperfromWallStreet.com.
An extraordinary volume of 1.4 million shares was recorded in support of the rally. Some of it likely came from a forced short squeeze, as the stock had been looking favorable for shorters lately.
No official news were issued along the rally. WhisperfromWallStreet seems to have pushed the stock up on their own. Of course, the technical situation was good enough for a bounce, but the $45 thousand Winning Media paid to WhisperfromWallStreet for their services made surely the bounce a strong one. [BANNER]
Third parties often pay for penny stock promotions with the single purpose of dumping the shares they hold at favorable prices. The continuation of the rally is questionable. Most often it’s a one day event, if no other promoters get paid to ignite another wave of buying.
The downtrend is justifiable, as the development stage company has virtually no cash and their Interferon product is not ready to hit the market soon. In fact, A5 only holds a patent for Interferon, but they are not doing anything with it. In general, administrative expenses and rent are the main sources emptying AFLB’s bank account.
