Imagine you are a shareholder in Power3 Medical Products, Inc. (OTC:PWRM), a one that looks after the short-term profit. Now, you would be happy every time when there are paid promotions, since they should attract investors to buy. By the end of the day, with some luck and if you are good enough, you might just as well see a 100% increase of your initial investment, and maybe more. This should be the case with all the promotions going on lately for the company in question. Unfortunately for the shareholders, it is quite the opposite.
As mentioned, promotions are on the way since the beginning of the year. Specifically, it is paid promotions and to be precise – some of them are paid by third parties, some are paid with the company’s stock. As usual, they include lots of positive news and assumptions, and again as usual, they bring the stock down with each day. If what came out today was the first promotion to take place this year, even if the downward trend continues on the market today, it is fair to assume that there would be a delayed reaction to the promotion. Yet, when there is a clear connection between promoting activities, increased volume and declining price, it is another matter entirely.
Power3 Medical Products has a main line of business the acquisition of specialty health care and biotechnology assets. High hopes are associated also with the subsidiaries of the company. The fact of the matter is though, that it is what its present health managers should be most concerned of. Because, it seems that nothing can bring stability in the stock market. Investors are losing confidence in the same manner as the share price is losing value. On Jan. 3rd, the stock traded for $0.025, whereas yesterday it could be bought for $0.018. One can image what would happen if promotions stop taking place and there is nothing to hold even the volumes high. [BANNER]
There are many companies that underwent the same difficulties like Power3 Medical and finally succeeded and operate, and bring revenues presently. There was some objective reason as to why they managed to overcome the crisis, though. It is hard to find it in Power3, so it seems that now the remaining question is not when the stock price would go back up, but if it is going up ever again.
