VelaTel Global Communications, Inc. (PINK:VELA) continued its descent throughout last week, but over the weekend there were some paid promotions aiming at boosting the price of the stock.
The Q3 financials were rather disappointing, and the announcement of an agreement didn’t help the price situation. On Friday, VELA dropped another 3.7% and closed at $0.104 with a volume of 1.5 million shares.[BANNER]
This development may have pushed someone to pay for the promotional efforts for VELA. At least five different newsletters disclosed compensations for such services over the weekend. Most of the promoters disclose StockMister as the third party paying for the services.
The compensation amounts vary greatly from $3.5 thousand to $40 thousand. This activity will likely attract some attention to VELA, the question is whether that will translate into a price increase.
Keeping in mind how promotions often work with penny stocks, VELA could get a spike today, but a long term stable price recovery would require something more significant than several paid newsletters touting the stock.
