It appears that some people seriously don’t want HealthMed Services, Ltd. (PINK:HEME) stock to lose the current momentum. One company even paid as much as $100 thousand to promoters just to keep it flying high.
After running up around 75% since last Wednesday, the share price stopped appreciating and the volume began to drop. Newsletters advertising the stock hit traders’ inboxes shortly after the market closed on Friday. KillerPennyStock.com and PennyStockAlley.com (apparently run by the same company) were sending out promotional emails.
According to the disclaimers, Heiwa International Corp. paid the promoters $100 thousand for one week of their services. This does not guarantee the stock price will be flying for the whole time, but it’s very likely that the stock becomes more liquid for a short period of time.
The company was promoted throughout September this year as well. The stock price lost 87% of its value after the effect of the advertisements wore off. This outcome is inevitable, despite the initial humongous buying wave created by the stock newsletters. [BANNER]
Along with the promotion, the company announced it has launched a Web-based open-source practice management solution called HealthTrac software. The news gave a seemingly legit reason for the stock price appreciation, though in reality it presented no possible material changes related to the poorly looking financials of HealthMed.
The company never had any revenues since inception, has no cash or other recorded assets and looks more like a shell company than a legitimate business. HEME is retained through borrowings from shareholders and the business doesn’t seem like it could generate any return in its current state, making HEME a very risky stock once the promotional effects fade off.
