PetroTerra Corp. (OTCMKTS:PTRA) Shoots Above A Dollar
The paid pump campaign by Wall Street Report took PetroTerra Corp. (OTCMKTS:PTRA) an additional 24.44% up the charts yesterday, launching the ticker well over the $1 threshold.
The promoter outfit Wall Street Report is certainly doing an excellent job of touting PTRA. Nearly two million shares of the company’s otherwise illiquid stock have changed hands in the last two sessions alone in an explosion of activity unprecedented for PTRA. This being the case, it is no winder investors are excited about the opportunity to make money from this run. However, they should also be wary.
Put quite simply, PTRA‘s latest ascent looks like a classic OTC Markets pump jump. The results of the company in question can be called mediocre at best. As it is, PTRA doesn’t seem to have any shot at commercial success or generating any lasting investor value in the foreseeable future, what with the $2000 it currently has on hand and its obvious and appalling idleness. And yet, people are jumping at the opportunity to trade its stock, because of the promise that it will run high.
Some investors may well profit from that run. Indeed, it is likely that a lot of people already have. However, everyone still involved with PTRA should keep an ear close to the ground, because there is a fair to good chance that this pump jump will go sour soon – and when it does, it will bring down a lot of people that weren’t quick or careful enough to get out on time.
And time may already be running out for PTRA – yesterday, the dollar volume was lower than the day before. True, the gap isn’t that large, but it may be taken as a sign that the pump is already losing its momentum.
Another detail opportunistic traders should keep in mind is the fact that just this August, PTRA sold a bunch of common shares for as little as $0.28 each.
How long can the people who bought the shares in question resist the temptation to sell said shares at a 450% profit, before they start selling en masse? There is no clear answer to that question, but as we well know, the possibility of a dump exists whenever there is a pump, especially one as massive and successful as PTRA‘s.
We’ll just have to wait and see how the whole thing turns out.