After scoring a second positive quarter in a row, China HGS Real Estate, Inc. (NASDAQ:HGSH) enjoyed a very promising government act last week. Nevertheless, HGSH stock has been on the decrease for quite a while now, as far as its chart performance is concerned. Worried by this trend, third parties have indulged in a paid advertising campaign to support HGSH stock in the upcoming session.
Though the NASDAQ-listed company has registered net profits for both Q1 and Q2 of 2011, investors seem to be giving HGSH stock a lukewarm response. Yesterday’s session was no exception as HGSH stock lost one more chance to crack the $1.00 benchmark as it barely gained 0.01% to close at $0.9901 per share. The only thing that showed signs that investors had not completely forgotten about HGSH was the volume as more than 56 thousand shares changed hands, which turned out to be a five-week high for the company.
Apart from the surprising volume spike, no other highlights for HGSH could be found. The last officially released news by the company saw the light of day on Nov 2. Back then, HGSH managers proudly announced that the Chinese government had awarded the company with the National Grade-I real-estate development qualification. In accordance therewith, the company was now permitted to seek growth opportunities not only in the Shaanxi province, but also in other regions. As much as managers welcomed this development, investors did not seem to care as only 400 shares of common HGSH stock were traded in the subsequent session.
The company’s unsatisfactory market performance has now urged some traders to search for alternative ways to benefit from their investments in HGSH shares. As a result, a fresh wave of promotional newsletters reached a number of investors shortly after the end of the last session yesterday. The cost of the campaign was reported to be $25 thousand.
Provided that the current promotion succeeds in moving HGSH stock considerably up, this will be a very strong sign that the company’s shares are actually more susceptible to cheap market manoeuvres than to serious events of strategic long-term importance.
