Stock Mister Scores a Hit-And-Run Pump On Urban Ag Corp (PINK:AQUM)
Is it possible for a business to be profitable even though it has no cash whatsoever to rely on? Oddly enough, there is a company called Urban Ag Corp (PINK:AQUM) which appers to have done just that. However, what is of more interest now is that the same company recently acquired another entity through a stock purchase agreement and has now become subject to a classical promotional attack . Before we go into further detail on the pump, let us see how it all happened. On Feb. 1, 2013, AQUM acquired 100% of Green Wire Enterprises, Inc., a Delaware-based business supposedly specialized in offering deployment and maintenance services to telecommunications systems providers. However, AQUM had no cash at hand to pay for its newly acquired entity. Instead, it issued a total of 2,025,000 shares of common AQUM stock which also happened to be exempt from registration provided by Regulation D under the Securities Act of 1933. Why the official 8-K report outlining the acquisition agreement came out 3 weeks later, i.e on Feb. 22, is not quite clear as of now. What is clear, though, is that Stock Mister unleashed a full-fledged promotional campaign only a couple of minutes after market open. The email touting the stock is mainly based on an old press release dated Jan. 28 providing more details with regard to the company's new acquisition, so the guys at Stock Mister have not exactly gone the extra mile when drawing up the message which is supposed to lure novice traders into buying the stock today. And for a remuneration of $25 thousand, the guys at Stock Mister could have at least been more imaginative than they actually turned out to be.[BANNER] Nevertheless, the pump job seems to have already satsfied its initiators as AQUM opened at $0.055 per share (gapping up 35% from its close yesterday) and peaked at $0.15, thus providing a maximal profit opportunity of 172%(for those investors who bought at the open; traders who had bought a stake in AQUM at an earlier stage reaped even bigger benefits). By the time we are writing this material, nearly 3.9 million AQUM shares have already changed hands and the stock has plummeted to $0.039 per share after hitting a daily low of $0.027 per share. So, AQUM shares have more or less lost a big chunk of their momentum and the session has not even ended yet. This pattern will most probably continue tomorrow as it is fairly applicable to Stock Mister's past pumped stocks . So if you were considering getting a stake in this company, you had better give it a miss for the time being and wait to see whether its most recent acquisition will have any material effect on the company in terms of fresh capital and sustainable cash flow(s).