Dephasium Corp. (OTCMKTS:DPHS) Pump Proves Short-Lived, Ugly
When pumps come to an end, the slaughter begins. When the last pump email for Dephasium Corp. (OTCMKTS:DPHS) trickled through on Tuesday morning, the price action for that day was a very good indication of where things were headed. Yesterday marked the full-on massacre for all believers who bought in on the pump campaign for DPHS.
With frenzied email pumps for the company first coming through on Sunday, buyers were invited to enter the stock at a price point of around $0.50. The rumors put in circulation that Awesome Penny Stocks were promoting DPHS through a paper mailer that turned out to be a fake helped DPHS run up to around $0.60. Tuesday saw some heavy selling in the morning hours that pressed the price down and it recovered only partially.
Even though DPHS came up with a new optimistic press release before yesterday’s open, this did nothing to help the slipping price and the stock closed 55% down. Obviously enough traders have caught up with the fact that there is no Awesome Penny Stocks mailer for DPHS and that the company is being pumped through other avenues that also happened to run dry.
We warned our readers about the very likely outcome of this situation in several different articles. The weak story behind the company – a shell merging with a company that produces cell phone cases used to soak up the harmful electromagnetic radiation, the bottom-feeder email promoters whose performance is abysmal despite their strength in numbers, and the fake paper mailer story, all added up to paint a more or less inevitable crash.
Virtually every single trader who bought shares between the start of the email pump and yesterday’s disastrous crash is currently looking at losses ranging from 45% to about 65%. All that is missing to complete this classical and short-lived calamity scenario is more promoters crawling out of their holes to tell their subscribers there is an epic bounce coming.
Doing your own due diligence before putting your money into any stock may help you avoid getting into a similar pinch with other stocks, especially when the company in question is a promoted OTC enterprise.
