Greenchek Technology Inc (OTC:GCHK) is running up after at least one promoter had fun with the stock.
The price held 40% gain amid Monday’s trading session, even though the morning spike has quickly faded away. The heavy trading will likely continue for only one day, as the disclosed promotion budget of $10 thousand is a standard that usually covers only one day of advertising. The amount was paid by Longview Communications.
The company has in turn provided operational update, which contained no disclosure of direct material developments, but gave a summary of overall achievements throughout the year.[BANNER]
Other than that, there is no particular reason why the stock price would stay up. The fundamental situation of GCHK is pretty troublesome even for a development stage company. No revenues and constant losses are the main properties of such businesses. However, the company also holds a seriously leveraged balance sheet, with barely any cash at all, and is forced to cover all the expenses by using equity sales.
GCHK market cap sticks around $1.5 million at the inflated pricing, which is way over the top for a business with $3 million in stockholders’ deficit.
Similar price run-up happened at the end of October, and the price quickly retraced back down. The same outcome should be expected of this move as well.
