In the last several days the stock of Public Adjusting Group Inc. (OTC:AAAA) has broken its narrow trading range. It seems that a promotional campaign in combination with an optimistic press release has moved AAAA share price up. Unfortunately, as of yesterday the stock has a new bottom, and maybe no more chances for appreciation in the near future.
AAAA lost yesterday 29.79% of its value and closed the market at $0.33 for a share. The trading volume was still huge for that illiquid stock with over 116,500 traded shares. The stock fell to $0.29 during the session, breaking a previous support level. It had previous climbed to $0.51, as it seems the highest value achieved during the promotional campaign.
Our newsletter database has counted 53 promotional e-mails on AAAA, all sent within the past four days. Total compensation paid for the campaign amounts $40,000 and the newsletters came in from a number of stock promoting websites. In support of the promotions yesterday, came also a press release from Public Adjusting Group, which however, contained very little of concrete plans and too much of general information about the insurance claims market in the state of Florida.
Public Adjusting Group recent financial condition looks also far from optimistic. At the end of March 2011, the company had $93,000 in current assets and $355,000 in current liabilities. Total revenue for the first three months of the year amounted $131,000, while the operating loss tripled to $150,000 from the previous quarter. Such numbers suggest that a company is more in a position to fight for its survival, rather than make huge expansion plans.
