Peoplestring Corp. (OTC:PLPE) has been on the progressive move over the past days. The climb started last Friday when the 
stock soared 36.36%, and continued yesterday with another 53.27% to its price.
Along with the price jump, traded volume of PLPE also rose up to exceed 8 million shares for the day.
Despite the fact that the reason for the huge gain remained in mystery, it seems that Peoplestring is determined to hold the climb for longer by a previously-used strategy. Namely, promotions.
PLPE got promoted yesterday for a total compensation of $75,000. The records show that last November Peoplestring used the same strategy and hit the gain. Now the result is still to be seen.
Apart from promotions, PLPE has not released any news on its activities lately. The last announcement came up a week ago, when the company reported that it has launched a national television advertising campaign for its Peoplestring social network and portal. However, the news failed to influence PLPE stock price at once, as the climb started a couple of days later.
According to its 10-Q report, as of September 30, 2011 the company’s cash position has improved however the net loss jumped up and the deficit reached over $1 million.[BANNER]
Management believes Peoplestring’s current cash balance of $563,806 at November 1, 2011 is sufficient to fund the minimum level of operations for the next twelve months. However, they also expect sales, marketing and advertising expenses and cost of revenues to increase as it promotes and grows its products and services. Meaning that the company may need additional capital.
Peoplestring’s failure to obtain adequate additional financing may require it to delay or curtail some or all of its business efforts and could cause the company to seek bankruptcy protection. While any additional equity financing may involve substantial dilution to Peoplestring’s then-existing stockholders.
