Southern ITS International, Inc. (PINK:SITS) Pumps Fizzles, Pumpers Persevere

SITS_chart.pngDespite the pumps running on budgets of up to $200 thousand, Southern ITS International, Inc. (PINK:SITS) coughed and spat, then stuttered to a close down in yesterday’s session. Volume was sliced in half and the stock closed down nearly 13%, settling on $0.007. Pumpers, however, were unfazed and continued touting SITS.

Promoters at Penny Authority dished out a new round of emails, advertising SITS stock and touting new press releases by the company, concerning contracts with VxStream for a compression algorithm and with Gephart Electric for the award of an infrastructure contract. While it would be lovely to know just how ‘significant’ this infrastructure contract is, the press release gives no details on its scope and there is no accompanying filing to reflect it. Additionally, the VxStream press release quotes up to 90% image compression of video offered – a number that makes one wonder how come the company hasn’t sold its algorithm to just about every other entity working with video streams.

Traders may want to keep in mind that SITS (f.k.a. Alco Advanced Technologies, Inc.) have previously come up with loud and proud press releases, announcing other ‘definitive agreements’ that didn’t come through and were never reflected in a subsequent filing, such as their August announcement for a $1 million investment agreement.

With SITS‘s most recent report dated September 2012 and no other more current hard information available, investors are left with PR hype press releases and paid pumps to keep them up to speed and those are hardly the best sources possible.

3NWTR_fail.pngThe promoters at Penny Authority pocketed a more modest $25 thousand for their promotional efforts, not disclosing for how long the ad campaign is slanted to run. Previously the same pumpers promoted New Western Energy Corp. (OTC:NWTR) in early January, once again touting ‘tremendous news’ around the company. Immediately after the pump the stock was squished 50% in two consecutive sessions.

Traders are advised to watch out around penny stocks targeted by paid pumps as those are highly speculative and volatile and can swing back down just as quickly as they surge, often ending up below their pre-promotional levels.

You may also like...