If you sometimes ask yourself who trades a company’s shares when there`s no information about this company, you are obviously not really familiar with companies like Westmont Resources Inc. (PINK:WMNS). In terms, you are asking the wrong question, the right one being how do they make money out of Westmont Resources?
After all, millions of shares are traded, so there must be opportunities for profits. No information at hand. As otcmarkets.com labels it: ” OTC Pink No Information – companies are not able or willing to provide disclosure to the public markets – either to a regulator, an exchange or OTC Markets Group”. So, you got no recent balance sheet to look at, no recent press release or any other sort of information coming from the company. You’ve got a stock that has been in a free fall mode for the last 6 months. What you also have is a lot of promotions for WMNS, the last one dated Sept. 19th, 2011.
Now, Monday was a positive day for Westmont. Almost 900k shares exchanged hands and the session closed at $0.017, which means a 70% increase for the day. The thing is, if you think that the promotion helped the stock achieve such results, you are very wrong. The promotion did come out yesterday, but way after the market has closed. So, nothing to justify the sudden increase that comes after months of a never ending decline. In terms, the promotion in question was paid with $7.5k and is obviously set to affect the trading activity today. [BANNER]
So, lets get back to the initial question – how do they make money? Not using their sixth sense, that`s for sure. In fact, there is the possibility of having two types of investors at hand here. The first type are those who make money. The second – those that face a great deal of risk mainly. Risk of the unknown, risk of the uncertainty that surrounds this stock. A play which would be more appealing to gamblers rather than to regular investors.