Hodgins Auctioneers Inc. (CVE:HA) (PINK:HAFIF) started attracting attention after publishing the Q3 results and decided to spice things up with a paid promotion.
The stock price increased nearly 42% on Wednesday. The daily trading volume was 30 thousand, way above the average as excessive interest from traders built up in response to HA third quarter operating results. The price still didn’t step out of its trading channel though, and the humongous increase in value was in the range of the general volatility of this stock.
On November 29, the company announced to have ended the third quarter with a profit under substantially increased sales:
- Revenues doubled compared to Q3 2010 and were $844 thousand;
- Turned a profit of $130.3 thousand over loss last year;
- No stock dilution was recorded;
- Ended the quarter with $2.6 million in cash.
Despite the encouraging quarterly results, the company obviously believes they are not fully recognized by the market. In turn, the stock was promoted under a paid campaign in a detailed newsletter sent out by AllPennyStocks.com. The promoter was compensated $7.5 thousand by Hodgins for the presentation of the company’s profile on their web site and the distribution of this newsletter.
AllPennyStocks explicitly stated in a disclaimer they might purchase or sell shares on the open market if opportunity presents itself. This means that any price increase that could be induced by their effort can be used to dump HA stock.
