The last two trading sessions have brought a massive downfall for the share price of Genco Corp. (PINK:GNCC) although the stock got promoted both on Monday and on Tuesday. The company has not released any news since August 10, thus it looks like it would be a wonder if GNCC recovers quickly from the loss. 
GNNC closed yesterday at $0.06 for a share, losing 22.58% of its value from Monday close. Thus, GNNC is now worth just half of what it used to be about a week ago, and yesterday’s closing price is a new six-month bottom for the stock. For a second session in row, GNCC also traded yesterday with much higher than the average volume – 87,400 shares changed hands compared to an average value for the past 30 days of only 14,200.
Though the lack of any news recently, neither good nor bad, the reason for such downfall looks clear. According to the disclaimer of one of the first promoting e-mails from Monday, the campaign has been paid by a third party with 150,000 free trading shares of GNCC. Given the low liquidity of the stock, such an amount could easily have a strong effect on the share price.
GNCC stock price moved only to $0.11 on Monday morning and has been since that time falling constantly down, although the promoters claimed that the company could make over $22 million in revenue from selling concert tickets. The campaign should run the whole week, but the chances for any late success do not seem that good. Some of the latest e-mails came in yesterday evening and according to our database there is also a cash compensation of $5,500.
Genco last quarter report for the period ended June 2011 shows zero total assets and zero revenue for the covered three months. As opposed to that, the company has debts for a total of $215,330. Also according to that report, the company was incorporated in 1985 and has been the holding company of a number of subsidiaries from various industries over the years, which have been all sold out.
Thus, the only information about GNCC current business activities comes from press releases and promotional mail – not the best source to use when investing in a stock.
