Aug 27, 2010 10:04 AM PDT
Though it's part of a pumping, EQ Labs, Inc. (EQLB) may still be worth latching onto - strictly from a momentum perspective. Though there's very little trading history, the last several days have made it clear that EQ Labs can draw a buying crowd.EQ Labs makes and markets energy drinks, and to the company's credit has been doing quite well with growing sales (at least according to the company's news). As a non-reporting pink sheet company, we can't really verify any results... our only concern.
Nevertheless, EQLB still seems to be accelerating it's investor-awareness growth rather than seeing it decelerate, so the stock may offer something of a free ride now that the pumping is getting traction.
We haven't heard a peep of news from Mundus Group, Inc. (MNDP) since the end of August, but that didn't prevent a promoter from jumping on board today. That fact that MNDP has gotten zero traction (it's flat, on mold volume) shouldn't be a surprise though.... nearly-identical promotional efforts had the same non-effect on August 3rd and August 13th. In fact, the stock actually sank that entire time - the pumping started at the stock's peak of $0.12. Perhaps today's pumping is guilty of the same problem many of the other news items from Mundus Group have been.... there's no news or substance. Announcing the status quo is intact isn't going to excite investors. The fact that Mundus decided to publish a PR like they did in August, or the fact that the promoter simply expected to get traction without any substance or founded argument, suggests the company is aware of their lack of growth or limited prospects.
Current or potential MNDP owners only have two concerns with any stock - how will it increase the top line, and/or how will it increase the bottom line? Today's pump addressed neither question.
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The 'news' from Magnum d'Or Resources Inc. (MDOR) was that the company was finally shipping the tire shredder to the plant/facility we first discussed on August 31st. That's no biggie... just the progress one would expect from Magnum. The problem is (ok, our problem) is that MDOR already seems to be running out of steam following the late-August, and despite an almost-daily dose of good news from the company or a paid promoter. The shredder should put them one step closer to revenue, yet Magnum d'Or Resources shares have barley budged today.
Point being, it's a red flag that MDOR isn't drawing any real interest now. Perhaps the party was over long ago, when everyone baked into the stock's price all the news they knew was going to follow. How's Magnum d'Or Resources going to fare when the pumping stops altogether?
The way the euphoria has already faded today for SOHM, Inc. (SHMN) is the very reason we worry about major pumping efforts. The stock hit a high of $0.35 this morning after Friday's close of $0.0875... a 300% gain at one point. Now it's back at $0.23 though, which is well under the price that most buyers paid today.
Don't misunderstand - the day isn't over, and SOHM shares may need to be held for days - if not weeks - to fully reap the reward. It's not like today's announcement from the pharmaceutical company is actually 'news' to those who do due diligence though.
Besides, SHMN shares don't have a particularly good track record. This breakout is apt to be a bust.
If you'd like to know of any changes in our opinion of MDOR, SHMN, EQLB, or MNDP (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.
