Penny Stocks Gone Wild Go Wild With Graystone Company Inc (PINK:GYST)

Exactly a week ago, Penny Stocks Gone Wild unleashed a promotional attack on sub-penny Graystone Company Inc (PINK:GYST). As it seems, following a couple of modest gains, GYST has now become ripe for yet another promotional round carried out by the same promoter. The only difference, though, is the inclusion of another promoter, Research OTC.

The former has been paid $3,500 while the latter claims to have received $15,000 for a one-day advertising campaign in support of GYST. As we have come to realize, size does not really matter in promoland. Just like a low-budget pump could d wonders with the stock it is promotion, an expensive campaign could prove largely disappointing. What is for sure in this case, however, is the fact that GYST stock is weak and therefore fairly vulnerable to promotion-driven market manipulations.

The reason why we think so is rooted in the company’s dreadful financial state. In fact, GYST‘s net loss accrued over the last four quarters of record exceeds $3 million while the revenue it has generated within the same period barely reach $106 thousand. What is more, the company’s current assets have been melting away while its current liabilities have been mounting, thus widening its capital deficit. An aggregate loss of some $4 million completes the picture.

Based on the numbers mentioned above, it is no wonder that GYST shares have shrunk to the sub-penny zone on the OTC marketplace. Mind you, however, that the stock has fallen that low in spite of the 1-for-400 reverse stock split executed eight months ago. The latter did move the price up two decimals, albeit in an artificial way. In this respect, one could only imagine the value GYST shares would be quoted nowadays had the reverse split not taken place. Nevertheless, the speed at which GYST shares are losing ground will certainly arise the need for yet another reverse split transaction sooner rather than later.

Before deciding on putting your money into GYST, be sure to check out the historical records of both Penny Stocks Gone Wild and Research OTC to see for yourselves how badly their past promotional picks performed on the charts just to get a basic idea of how many investors’ pockets got burned that way.