Propell Technologies Group, Inc. (OTCBB:PROP) Caves In After Hard Mailer
Yesterday the price of Propell Technologies Group, Inc. (OTCBB:PROP) dropped by over 16% to arrive at a close of $0.57. The downward move happened on an unprecedented share volume – PROP shifted 504 thousand shares.
The company was trading as high as $1.12 just three weeks ago. The reason for the initial surge that helped PROP nearly double in price last month was very likely the dissemination of a hard paper mailer. The advertising material for PROP had an announced print run of 2.3 million copies and a lifespan of 30 days. The disclaimer disclosed a total budget of $2.5 million spent to promote PROP stock.
As usual, the paper mailer set very high price targets for the stock and while it did manage to bring the price to a close near $1.00, the movement from that point on reversed and PROP returned from $0.94 to $0.63 in a matter of three harsh drops in late June.
Here is a brief financial rundown of PROP financials as of the date of their latest report for the period ended March 2013:
- $21 thousand in cash
- $1.4 million in current liabilities
- $2 thousand in Q1 revenues
- $980 thousand in Q1 net loss
Those numbers hardly reflect the business performance of a stock that is about to break through to $2.00 per share as the hard mailer suggests, but then again, when you’re getting paid $2.5 million to advertise a stock, you can set the price target at just about any level.
It looks as though the initial effect of the mailer is done and now a bunch of paid email pumps have cropped up, trying to boost investor confidence in PROP after the first hard drop of late June. The last of those touts, compensated $25 thousand, came through yesterday but did nothing to help the stock price.
Other stocks that dropped yesterday include Northumberland Resources, Inc. (OCTMKTS:NHUR) who lost a little over a quarter of their market cap in a single session, dropping 26% to $0.60 per share. Petrosonic Energy, Inc. (OTCMKTS:PSON) dipped 7% to a close of $0.72.