Will Spectrum Acqstn Hldgs Inc (PINK:SPAH) become the next 5-10 bagger in pennystockland over the next couple of days, especially after the major reverse stock split? Considering the heavy promotional support it has been getting so far, such a scenario seems quite possible now.
It all began with the launch of a massive paid advertising campaign in support of SPAH stock on Thursday morning when half a dozen emails worth a total of $620 thousand reached our database within a couple of minutes. The same movie reran at noon and in the evening, as well. In the meantime, a brand-new press release saw the daylight. Aimed at informing market players that SPAH was in the process of developing a novel, eco-friendly technology to be used in the mining industry, it also added up to SPAH’s market run that day. As a result, SPAH gained an astonishing 446% closing at $0.273 per share on a volume of 10.4 million.
To a certain extent, history repeated itself on the next day. Another batch of promotional emails flloded investors’ mailboxes citing the same compensations as the ones that had been sent on Thursday. In addition, SPAH churned out another press release not only to lay greater emphasis on the two green mining technologies it has already patented, but also to shed light on its new patent-pending apparatus to be used in accordance with these technologies. Ultimately, SPAH gained an additional 35% to close the session at $0.37 shifting a turnover in excess of 6 million shares.
So far, so good. Yet, the current promotion’s potential seems to have weakened considerably and long-term growth on the charts solely based on paid advertising is unlikely to materialize. Just two months ago, i.e on Oct. 5, a gargantuan 10,000 to 1 reverse stock split came into effect. For the record, SPAH had just hit the ultimate rock bottom of $0.0001 per share on the previous day. That is why, when it resumed trading in early-November, SPAH stock was shortly traded around $1 before it tanked 95% to $0.05.
In a nutshell, SPAH might have a chance of scoring high on the charts. Yet, unless the company’s green mining technologies make a breakthrough in the industry, the current tidal wave of enthusiasm about SPAH stock will quickly subside.
