A press release, pumped by a new advertising campaign, led to a highly intensive trading of the stock of Global NuTech Inc (OTC:BOCL) yesterday. While BOCL shares fell down 4% to $0.0048, the slight decrease was provoked by an all-time record volume exceeding 15.2 million. The latter is twenty times higher than the daily average trading volume for BOCL stock.Such abrupt fluctuations are typical for most penny stock companies whenever any corporate updates or promotional waves pop up. However, they usually have a positive rather than a negative impact on the price.
So, why did BOCL stock fail to live up to the expectations of its managers? When they announced yesterday that a product of a subsidiary of theirs was to be actively advertised on a quarterly magazine read by as many as 500 thousand households, this piece of news definitely triggered massive trading for BOCL shares. The press release was further dressed up in an 8-K SEC filing. If this was not enough, an interested third party paid $15 thousand yesterday for a one-day investor awareness program in favour of BOCL stock.
As much as the company’s managers did their best to put the stock into the spotlight, the reaction of iHub posters was ignorant at best. No BOCL-related posts have come up for the last three weeks. [BANNER]
Occupying the OTCQB marketplace, BOCL is a regular SEC filer. While this is a fairly positive market behaviour for a company on the sub-penny level, it can hardly make investors turn a blind eye to the company’s current financial state as seen from its Q3 report for 2010. In brief, as of Sep. 30, 2010 BOCL has:
- a nine-month negative working capital of $83 thousand, which is 2.5 times bigger than the same indicator as of Dec. 31, 2009;
- a quarterly net loss of $30K.
BOCL claims to be a development-stage company. Therefore, the lack of revenues is not necessarily a bad thing at the moment. As mentioned, however, one of its subsidiaries has already developed a product line ready to penetrate the market. Will the upcoming ad campaign boost the sales? The next few quarterly reports will show.
