Yesterday, Alliqua Inc (OTC:ALQA) rose 16% to $0.27 on a volume of 7.4 million shares, of which 3 million shares were sold short. In fact, ALQA made an overall spike of 74% in the last four days.
The company became a target of massive promotions since April 13, as indicated by Hotstocked. However, it is not very clear why it was only four days ago when they started to affect the stock. Most likely the promoters who joined the campaign later were much more influential than the first ones.
The following is a summary of the ongoing promotion of ALQA:
- Penny Stock Prophets received $5 thousand for the campaign.
- Lebed was compensated $25 thousand.
- Wallstreet Grand was paid $50 thousand.
- Trader TV receives $5 thousand as a monthly fee and manages a total advertising budget of $500 thousand for the campaign.
It is visible that a lot of money was spent on the promotion of ALQA, which may explain the serious surge in the stock price and the volume these days.[BANNER]
The curious thing is, why there was no significant exaltation about the stock when on March 2 the completion of $1 million private placement was announced. The deal was between ALQA and Frost Gamma Investments, headed by Dr. Philip Frost. At that time there was no reaction by the market. But now that promoters are shouting everywhere about the deal, ALQA attracted tremendous market attention.
ALQA is a biomedical company which develops, manufactures and markets proprietary products utilizing its technology portfolio. The company has projects in the field of active ingredient and trans-dermal drug delivery and advanced wound care.
The investors who got fascinated by ALQA or are about to do it should consider the influence of the massive promotion which accompanied the stock these days. Due to the this fact it might not be very easy to predict what will happen with the value of ALQA shares in the comping days.
