ALAS International Holdings, Inc. (OTCMKTS:VDSC) Destroyed by Pumps
What goes up must come down, or so they say. It seems this rings particularly true for ALAS International Holdings, Inc. (OTCMKTS:VDSC), a/k/a PV Enterprises International, Inc. The company recently went through a mad run, driven by a combination of press release hype and email stock pumps. Predictably, this was followed by the usual price action that takes place when pumps go bad – a massive crash.
Yesterday VDSC traded in furious volume, which combined with the price movement suggests a significant selloff taking place. The company shifted more shares than the previous two days of excited climbing combined and dropped a hefty 39.5% down, returning to double-zero land. Only a single new pump email arrived for VDSC yesterday, half an hour before the opening bell, with no further emails as the stock started tanking immediately after the market opened.
We covered the company over the previous two days, alerting readers to the potential dangers of investing in VDSC. There are probably a few happy campers who managed to play the pump and get out of this one on time, raking profits even if they sold along yesterday’s crash. Those who decided to believe the company promises of millions of revenues within the next few months and invested in the stock are in for quite a bit of a disappointment.
Traders who were gloating and cheering about shorts having to cover in yesterday’s session are probably very confused as well, as the stock tanked and shorters likely walked away with a healthy profit and the short squeeze never happened.
Many are also stoked for the dividend VDSC promised on Jul 1, but considering the inability of the company to deliver on its promises in the past, such as the January 2012 Korean charter fiasco which never delivered the $10 million in charter revenues as promised in earlier press releases, traders would be wise to tread carefully.
VDSC was not the only stock that took a tumble in yesterday’s session. iTalk, Inc. (OTCBB:TALK) slipped 20% down to $0.28 per share on a brief morning volume spike. Northumberland Resources, Inc. (OTCMKTS:NHUR) fell 19% to close Tuesday at $0.49 per share.