Hype from The Penny Stock Crew Props Up Chancery Resources, Inc. (PINK:CCRY)
The pink sheet promotions are multiplying in the first days of 2013, with prices easily doubling for single-digit penny stocks such as Chancery Resources, Inc. (PINK:CCRY). Announced as “the new year monster” by two paid mailings, CCRY may see action in the following days, though the ticker recently spiked and lost 90% of its value in days on unexplained activity. 
The Chancery Resources stock was barely traded in the past year, but shot up at the beginning of December, although at the end of November 2012 it de-registered and chose an alternative reporting standard. In the last month of the year, the small Chancery Resources company acquired AirTrona International Inc. and changed its business plan, instantly gaining a real business when until recently it listed itself as an exploration-stage mining company. The mining research, a staple business model in penny stock circles, seems to have yielded little interest. 
The company has a working website and a marketable product, though it works with limited resources, small even in comparison to its $3 million market capitalization:
- $355 cash/total assets
- $372,057 total liabilities
- $188,133 net loss
With these limited resources and burning through cash, the company competes with many other producers of similar devices, which are relatively simple to produce, and using an electric spark to generate ozone is an old and widely-used technology.
However, a cheap stock such as CCRY may awaken quickly to high volumes and generate significant daily moves, gathering up investors looking for fast gains. Add to this the press release from the company announcing plans to start a US-wide franchise program and the ticker may sell like fresh bread. But one look at the graph shows that sudden climbs end just as suddenly.
On January 2, two promotions tried to make sure CCRY does not fall asleep for the rest of the winter, one with a $55,000 budget, the other with an $15,000 price tag. We expect the pump of The Penny Stock Crew to last for a while and end in fast and furious changes in the stock price.
Penny Stock Crew is a pumper with limited experience, taking in easily bought shares with the hope of high and fast gains. The effect of the pumps is predictable, and we may see a repetition of the iMing Corp. (OTC:IMNG), a stock pumped at the beginning of December. Since then, the ticker is down 50% on high-volume selling only days after the pump email.
