Yesterday Nouveau Life Pharmaceuticals, Inc. (PINK:NOUV) got a new 52-week volume high. Unfortunately, the reason was a pump by Penny Stock Circle (PSC) and some traders got burned.
NOUV started off flying and hit $0.014 about 40 minutes in the session, but after that it plummeted back and closed down 5.56%. Those who were buying on the way up found themselves bagging serious losses.
According to the disclaimer of the tout mail, a third party has paid PSC $35 thousand for the pump effort. Traders should keep in mind that there is no information on who paid the third party.
One thing which may give traders an idea of who may be paying the third party, is the timing of promotions and news. The tout mails started coming in on Sunday and NOUV issued one of its optimistic press releases shortly before the open. If the people behind the pump scheme don’t have insider information, the timing is a very suspicious coincidence.
Another point of interest could be the past performance of the promoter. These are a few examples of past PSC picks: SNPK, CQPT, RACK, TLFX, VPER. These companies span different industries, but they have at least two things in common – PSC pumped them, and then they crashed spectacularly.
Back to the news, NOUV claims it is talking with international mass distribution firms, which may sell NOUV’s products in Canada and the UK. For some reason the company doesn’t name any of these supposed distribution firms.
This is not the only unknown in NOUV’s strategy. There is very little information on what NOUV really has at the moment, and nothing solid to support a price surge.
The company is using the alternative reporting standard, which doesn’t require the same level of disclosure as would be required if the company was reporting with the SEC. NOUV can’t even handle that – the OTC Markets has the company listed on the OTC Pink Limited Information tier
The latest financial report doesn’t make for an inspiring read:
- $1.1 thousand in cash
- $1.1 thousand total assets
- $146 thousand total liabilities
- $nil revenues[BANNER]
Traders should always do their due diligence, especially if they are looking to invest in a stock, instead of playing the promotion. Even those who played the promotion had very little time to get out of the disaster NOUV turned out to be.
