The Pump for Cloud Security Corp (OTCBB:CLDS) Goes International

The first wave of promotions squashed Cloud Security Corp (OTCBB:CLDS) beyond all recognition. A combination of email alerts and a landing page was deployed back in March and, at first, the effects on the ticker were absolutely profound. Before the pump began, trading was virtually non existent, but once the campaign started, investors started to get properly excited.

And it wasn’t really a one-day wonder, either. We saw some massively expensive pumps over the last couple of months (Media Analytics Corp (OTCBB:MEDA) is a prime example) that ran for no more than a couple of days after which they squashed the featured ticker leaving massive holes in a lot of investors’ pockets. CLDS was a bit different. The artificial excitement pushed the price well above the $1 per share mark during the first two weeks of March and although the ticker displayed some serious corrections, it managed to remain relatively calm throughout the first three weeks of April. It experienced a scary drop between April 18 and April 23 but, surprisingly, it managed to regain some of the lost ground during the following weeks.

When the emails stopped on May 20, however, there was nothing to cushion the fall. About a month later, the ticker had dropped from around $0.50 all the way to less than $0.30 and it’s fair to say that recovery seemed impossible.

CLDS, however, surprised everyone once again by showing signs of waking up during the second week of September. Suddenly, we started seeing higher trading volumes and some movements in the right direction. By the beginning of October, the ticker was once again testing the $0.70 per share mark and, as always, there was a reason for this.

The pump was revived once again with a new landing page that was launched in August. As we wrote in our previous article, a hard mailer campaign was also set in motion but the drop from yesterday and the catastrophic performance in today’s early trading (CLDS is 17% down less than an hour after the opening bell) suggest that this new wave of pumping might be a bit short-lived.

Still, we can’t blame the pumpers for not trying. Remember the new landing page we talked about? We managed to find it under a different domain name and when we dug a bit further we saw that there is also a German version of the same optimistic report with all of its ridiculous price targets.

You might be wondering why, of all the languages out there, did the pumpers choose German. Well, it would appear that CLDS‘ shares are now also listed on the Stuttgart Stock Exchange. This sounds somehow familiar.

We cover promotional campaigns, both big and small, around here every day and we’ve seen something of a trend for penny stocks targeted by huge pumps to have their shares quoted on one of the German stock exchanges. Some of the most notable examples from the last couple of months include Swingplane Ventures, Inc. (OTCBB:SWVI), Superior Venture Corp (OTCMKTS:ILUS) (now known as Ilustrato Pictures International Inc), TagLikeMe Corp (OTCMKTS:TAGG), Dephasium Corp (OTCMKTS:DPHS), iTalk Inc (OTCBB:TALK), Lot78 Inc (OTCMKTS:LOTE) and African Copper Corp (OTCMKTS:ACCS).

If you take the time and check out the charts for the companies above, you’ll see that they haven’t really fared well under the promotional pressure. Some of the tickers got delisted by the German regulatory organs shortly after they started showing some erratic movements and this could just serve as another red flag around CLDS, who, by the way, have enough of them already. Make sure you do a lot of due diligence and consider all the risks before jumping in.