Just to be clear, we're not complaining or saying it's a bad thing - we're just letting you know what's going on with these penny stocks in case a sudden breakout effort seems to have no particular prompt. Last week's most-promoted penny stocks were Odyssey Oil & Energy, Inc. (OOGI.OB), Digital Utilities Ventures, Inc. (DUTV.PK), GetFugu, Inc. (GFGU.OB), Ventana Biotech, Inc. (VNTA.PK), and eWorldCompanies, Inc. (EWRC.PK).
The question is, are these penny stocks going to permanently rely on promotion to keep them going for the long haul? Or, will you need to get off the train when the pumping stops? Let's take a closer look at each to separate the hype from the facts.
Volume -
or lack thereof - has been a serious problem for
Odyssey Oil & Energy, Inc. (OOGI.OB), though the penny stock has indeed responded well to all the recent hype.
In all truthfulness, Odyssey Oil & Energy may actually be worth the new interest. The Boschoek algae bio-fuels/carbon capture pilot plant was completed and went operational this month. Also, H-Power International (Pty) Ltd (51% owned by Odyssey) has entered into negotiations with a major international wind energy company to utilize H-Power's patented Hybrid Battery Technology, which stores the power generated by wind farms.
It's still not clear what kind of revenue potential we should expect from either project, but this is the most traction we've ever seen from this company.
Digital Utilities Ventures, Inc. (DUTV.PK) has also responded incredibly well to a professional pumping effort, though after non-existent trade activity, a little PR goes a long way. Volume has been solid though, and it seems to be working.
What the company's technology does is convert an Internet-based television signal into an actual television signal at the so-called "last mile".... near or at the viewers physical TV set.
The timing for this penny stock makes sense too, as it's only been in the last couple of weeks that Digital Utilities Ventures has actually commercialized the technology. More growth could be on the way.
GetFugu, Inc. (GFGU.OB) rallied 81% last week - one of the better penny stock performances that we can't help but wonder if it would have happened with or without the promotion. Nevertheless, the effort seems to be working, which makes GFGU one of the most interesting penny stock prospects we've come across lately.
In short, at 50 cents now versus the $3.00 shares were trading at in April, there's a lot of rebound room. If the promoters can get a hold of it (as they already have), a recovery of GetFugu's prior highs wouldn't be tough to do.
It's not clear how much (if any) of the
Ventana Biotech, Inc. (VNTA.PK) promotional effort was paid or not, but this may well be a case where a pumper saw a very thinly traded penny stock he/she could control, and did so through a paid effort.
See, the company itself hasn't done or said anything publicly in months (if that). More often than not, a paid promotional effort is accompanied by tangible news from the company itself. To see any kind of PR effort without the company backing it up is simply unusual. However, it may well be effective.
Maybe a coat-tail trade? Just don't be the last one off the train.
eWorldCompanies, Inc. (EWRC.PK) got serious about its stock a few weeks ago, and seems to have had some success with the early effort.
The penny stock surged from practically nothing to $0.0025 in early June, before any hard-hitting news about its Boomerang Media Station or the truce with Barry Rothman's law offices were announced. The press release barrage has been pretty steady since then, though EWRC shares hadn't made much follow through... until this weekend.
The recent table-pounding may have done eWorldCompanies the favor they were hoping for - it pulled the stock out of a rut, and above a key resistance line.
We're still not sure of the breakout will 'stick', but we do suspect the promotion will continue for a while.
One of the key problems with this stock is that investors may not understand what they do well enough to buy into it.
Note: Though a pink sheet stock, eWorldCompanies is a fully reporting company.
