Chancery Resources, Inc. (PINK:CCRY) Breaks Buying Record, Back as Double-zero Bid
If a penny stock fools you once, shame on the pumper, but beware if you are tempted to be cheated twice. We declared Chancery Resources, Inc. (PINK:CCRY) defunct a few days ago, as paid promoters moved on to new picks, and the ticker slid down dramatically, losing more than 85% of it value in two weeks. Yet quite unexpected, the stock shot up on the highest buying volumes in the past three years.
Even valley buying at double-zeroes should be done warily, as CCRY holds little to offer in terms of real business. The stock has shed factions of a penny until it arrived at double-zero territory and gained a new attraction as a risky and potentially profitable day trade. Otherwise, CCRY has little to offer on its financial statements:
- $87 thousand in ‘checking’ assets
- $150 thousand current liabilities
- $181 thousand total income
- $8 thousand net loss
While short on real news, this provider of ozone generators used paid promotions well, the ticker spiking five times with only four emails and a budget of a little above $10,000. The ticker quickly retreated to double-zeroes, but even then it became attractive for bargain-seekers getting in at $0.0022. But even those investors, if they could not leave the positions, lost as the stock slid to $0.0012. The current day bounce may be wiped out soon, or create only a minor climb.
One of the crowd of pumpers for CCRY was Stock Hideout, a mailer with a relatively low average compensation of $6,000. Stock Hideout creates short-term campaigns and assists larger pumpers, creating disproportionate movements in the tickers it brings to light. This is the case of recently promoted Tranxbyte Corp. (OTC:ERBB), which doubled in price, but then went back to pre-pump levels, wiping out the gains.
In the case of CCRY, expect sharp movements and potential losses and do your own estimation of risk before committing to an underpriced stock that everyone sees as day-trading star.