Bluforest Inc. (OTCMKTS:BLUF) Drops Amidst Enormous Promotion
After the initial surge that put Blueforest Inc. (OTCMKTS:BLUF) at the doorstep of $2, the company took a big step backwards. During yesterday’s session just an hour before closing time the stock plummeted and barely stopped at $1.63. More than 700 shares were traded which is still quite a significant number at these price levels.
Investors should be warned though that BLUF gained so much attention only because it has been touted to high heaven at the moment. In just 4 days we have received more than 50 alert emails about the company from some of the major newsletter operating in pennyland.
BestDamnPennyStocks, through the outfit Siri.biz are expecting a compensation amounting to $100 thousand euros, while the infamous Research Driven Investor should receive a total of $150 thousand in two payments of $75 thousand. Not to mention the $200 thousand disclosed by MarketBulls. With such serious sums being passed around the hard mailer that is also being distributed didn’t come as such a big surprise.
In order to make the campaign as wide-spread as it can be Murphy Analytics LLC. were hired to create a report about BLUF. In reality this is nothing more than an extensive advertisement for the company because MA got paid $6500 for this service and in their own words : “MA made no attempt to independently verify the reliability, accuracy or completeness of this information”
It seems that some people are quite bent on spreading awareness about BLUF and are sparing no expense. But ultimately is it worth even considering investing in them? Frankly, the answer becomes quite obvious when you open their latest financial report:
- $43 cash!!!
- $17 210 total current assets
- $3.2 million total current liabilities
- ZERO revenues since inception
- $24 million net loss
Being in business for five years has left the company with accumulated deficit reaching the massive $303 million. In just three months BLUF has lost 70% of its value dropping down from $5 per share. Such a high price level was only possible after two reverse splits less then a year apart – 1-for-500 in March 2012 and 1-for-30 in January this year.
Staying away from the ticker is the best thing to do for now. It has already started correcting but the massive campaign might be able to postpone further crashing. Despite some promoters being employed for 2 months of service with such dismal fundamentals the hype will be hard to maintain.
The surprisingly tenacious Awesome Penny Stock pump for Xumanii, Inc. (OTCMKTS:XUII) is still going on keeping the company as one of the most traded. Unfortunately for all those who haven’t already shed their holdings yesterday the company slid further towards the bottom wiping more than a third of its value and closing at $0.187. Sanborn Resources Ltd (OTCBB:SANB) is also experinceng a period of sharp corrections losing another 32%.