Yesterday, Double Eagle Holdings, Ltd. (PINK:DEGH) added another page to its promotional biography. Two promoters, Our Hot Stock Picks and Xtremepicks, joined forces in order to bring DEGH higher on the chart.
According to the most comprehensive library of promotions on the internet, the campaign of DEGH has started as early as the beginning of January. It intensified around Jan. 27, when a series of volume and price jumps were initiated.
The two promoters of DEGH apparently have decided to circumvent the law by not specifying whether they were compensated or not for the campaign. However, online data indicate that Xtremepicks has received $18 thousand so far for its promotions, while Our Hot Stock Picks has not disclosed any compensation at all.
Apparently, the promoting
duo has mastered all the tricks of avoiding SEC newsletter rules, because there is no information about the third parties behind the promotion either. Despite the want of information about the campaign, there is at least an indicator which can help estimate the effectiveness of the promoters. The average intraday high of the two promoters is between 4% and 5% respectively, but yesterday the stock traded below the previous close, signaling that the promotion has already been exhausted.
Given that GEDH has been in the clutches of promotions for more than a week, it is very obvious that the effect of the newsletter has already waned. So, there is not much to expect from GEDH in the coming sessions, especially now that the fading promotion could entail a large-scale decline in the stock price.
