The promotion of Xinde Technology Co (OTC:WTFS) which took place yesterday has headed the Hotstocked weekly rank list of the most expensive promotions. The campaign included many popular promoters such as Killer Penny Stocks, Penny Stock Circle, Investors Hub and so on.
The most striking thing was the amount of money that was invested in the wide market awareness program which is going to continue for one week. On the first place, a paying party called Red Panda Investments Inc. has paid $800 thousand to a group of promoters including Killer Penny Stocks, Gladiators Stocks and others.
Apart from that, another paying party called Capital Financial Media has paid $3,000 for the newsletter which came from Investors Hub. Another participant in the campaign, Penny Stock Circle, disclosed $25 thousand as compensation, but didn’t reveal the name of the third party. [BANNER]
As a result of the lavishly sponsored promoting efforts, the trading volume of WTFS literally burst out yesterday. A total of 8.1 million shares were traded, 2.3 million of which were part of the short volume. Just for comparison, the 90-day average volume is only 400 shares.
The promotional campaign apparently created a lot of buying pressure, which kept the share price above the previous day close throughout the whole session. Eventually, WTFS closed the day 24% higher at $0.742. The previous day the stock had risen 200% on a volume of only 4 thousand shares.
As a result of this price spike, the company has reached a market cap of $178 million, which will have to be justified by the company’s core essence, otherwise a sharp correction downwards may follow.
