SMA Alliance, Inc. (OTCMKTS:SMAA) Promoted in the Middle of a Slide
It seems the promotional efforts are wasted on SMA Alliance, Inc. (OTCMKTS:SMAA) as the stock slides on massive selling in the past few days. The latest pumpers’ email came on Tuesday, but that may not be enough to stem the exodus of investors. The ticker lost 20% to $0.0816. 
The emails for SMAA were clustered on May 13th and 14th, with a small budget of $12,500. It is a mystery why pumpers would choose a ticker that has been sharply retreating in the past days. The emails themselves may have triggered enough activity so that unhappy investors could finally shed their holdings of SMAA. The new trading session will show the effect of the latest email, but the message from May 13th coincided with record selling.
The latest email coincides with the announcement of a software release, of a new program called Car Blaster v. 6.4 that aims to decrease program start-up times. The official release will be after Tuesday’s market close, so we may expect after-effects on Wednesday.
Not even the relatively solid business of the company was enough. SMAA claims that it feeds data to AOL, eBay and WalMart, leading to resources formidable for a pink sheet company:
- $1.7 million total current assets
- $635 thousand total current liabilities
- $1.9 million gross revenue
- $232 thousand net loss
Although the separate emails come from a crowd of different pumpers’ emails, the paying party is one- RJLQ Investments S.A. This entity seems to be devoted entirely to SMAA, its only promotion in our database, with a total of 10 emails.
This year to date, SMAA has been generally up, with some periods of retreat. The ticker has been supporting itself with regular press releases on expansion, which happens fast in the world of IT services. The latest promotional emails may actually break a good thing, leading to a sharper drop after new investors withdraw. This may partially explain the selling from May 13th.
Also, we don’t know when the promotions will stop, which can lead to a further drop in price. While SMAA has a longer-term outlook and seems accessible at 8 cents, this is no guarantee that the ticker will try to recover previous higher level, as high as $1.70 two years ago.
