Yesterday a paid promotion for BookMerge Technology, Inc (PINK:BRKM) stock moved the share price and the trading volume much higher. The company also issued a press release to support the rise, however, it could not hold for more than a couple of hours.
BRKM closed the session at $0.15 for a share without a change in the closing price and around 819,000 traded shares. On Wednesday evening, a promoter profiled the stock in his newsletter, saying that BRKM is technically set to break out during yesterday session. A few hours before that, the same promoter had sent another e-mail, covering this time some fundamental data about the company. And the result that followed was probably worth the $40,000 paid for the promotion by a third party.
Shortly after market opened, BRKM shot up to $0.175, the highest level for the past two months, and a possible over 16% return from the previous day close. The penny stock world has seen jumps of a much larger scale, yet taking into account that it is the second promotion for the stock in less than two months the performance could still be considered a success.
There was “news” as well yesterday morning, not that new and impressive, however. The company announced that through its subsidiary Extreme Biodiesel it keeps researching and developing its second generation biodiesel processing equipment. The PR from the previous day was of a similar kind, and it looks like if it were not the promotion afterwards almost no market reaction would have followed.
According to BookMerge Technology latest 10-Q, it engages in the manufacturing of home biodiesel processors. BRKM had at the end of March 2011 more assets than liabilities, but a huge working capital deficit and a weak cash position. Sales have multiplied in the last quarter on an yearly basis, though that has yet not been enough to cover all the expenses and the net loss increased to reach over $500,000.
