Healthmed Services Ltd. (PINK:HEME) stock price collapsed today early in the trading session as the preceding rally exhausted.
The stock price more than doubled since Monday when the company said they have entered into a software development agreement with Veritas Software System and concurrently launched HealthTrac software application.
The stock was also pushed up through promotions that are still ongoing. KillerPennyStocks.com continues to send out emails advertising HEME stock, and creates thus the artificial liquidity. This type of news and promotions mix often helps the price rally remain in action for a few days, but the outcome is mutually the same for all of them – sharp declines on strong selling pressure. [BANNER]
That is exactly what is happening right now and traders should not expect things to get much better. Only short-lived corrections tend to happen on the way down.
We have warned traders on the same day on which the promotions hit their inboxes. The company holds a record of putting up with promoters and has barely any business operations going on. Even if its contract for software development is a real deal, there is no guidance on when the product could be finished, nor any important milestones were defined. Unless something material happens, this stock runs purely on media manipulations.
