Yesterday the stock of Propell Corp (OTC:PROP) surged up almost to its 52-week high as the company announced the launch of a new suite of promotional tools. Today, the stock will also get again help from the stock promoters and may actually strike a new yearly high. 
Yesterday, PROP closed the market at $0.189, gaining 26% from the previous close. The trading volume exceeded 3.7 million shares, which is an absolute record for the rarely traded stock. Today’s session will show if PROP will have a new price record as well. A new promotional campaign has been launched after market close yesterday.
The campaign is new, though it is run by an old promoter of the stock. The new e-mails come from a website of one of the big and famous stock promoting companies and the disclaimer states that this company has been previously paid $55,000 for similar advertising services. Both PROP chart and our newsletters database confirm that this previous promotion for PROP stock took place at the end of March this year.
Just like at present, news also supported the action back then, though it seems rather doubtful if the news from yesterday will this time bring a fundamental change for Propell’s business so that its stock price can start rising up in a stable manner. In the middle of last month, the company filed its latest 10-Q and it did not show much of improvement neither in its financial state, nor in its operational performance. As of end-March 2011 PROP has:
- $35,000 in cash and other liquid assets
- Over $3 million in current liabilities
- $24,000 in net revenues (a 36% decline from the previous quarter) and a net loss of $215,000.
Among PROP current liabilities is also a note for $1 million which is convertible into shares of common stock at the lenders’ option at the lower of $0.27 per share or a 25% discount from the next issuance of common stock by the company. In February 2011 the original terms were amended: the maximum amount to be borrowed under the note was increased to $2 million and due date was extended to August 31, 2011. The note may be converted once the company has raised $500,000 in new equity.
