The Stock Brainiac Makes a Bad Fist of Touting Abby, Inc. (OTC:ABBY)
A quick glance at our promotional database hints at a massive promotional campaign in favour of Abby, Inc. (OTC:ABBY) – an emerging Oil & Gas exploration company that has only recently started trading on the OTC exchange.
The emails started coming in as early as Nov. 13, showing no sings of slowing down. The balance for December alone amounts to a total advertising budget of $145 thousand. The latest batch of emails hit investors’mailboxes earlier this morning when promoter known as The Stock Brainiac disclosed to have received $60 thousand to raise marketing awareness on ABBY. While this incentive might lure you into taking part in a seemingly profitable undertaking, it is worth noting that a pump job of this scale is much more likely to burn your pockets rather than add value to your investment.
To begin with, while the sixty-thousand-dollar campaign is the only pump for ABBY today, it is just the umpteenth effort to ramp up the market value of ABBY shares. As seen on the chart, the previous pump jobs have so far failed to push the stock into an upward trend. That is why, being overly positive this time by expecting the unexpected would hardly bring any benefits.
In terms of corporate governance, ABBY is currently managed by Thomas Forzani who smultaneously acts as CEO, CFO, Secretary, Treasurer, officer and director, i.e a 6-in-1. No, Mr. Forzani is not a genius. He is also the CEO of High End Ventures Inc (PINK:HEVE). Incorporated in 1999, it took HEVE 7 years to admit defeat in exploring for precious metals and start looking for alternative business opportunities”. Having failed to achieve any significant corporate milestones, HEVE abruptly quit filing regular reports with the SEC in 2009 and has since worn the OTC Pink No Information moniker. As a result, HEVE‘s current operations, if any, are now officially anybody’s guess.
ABBY was founded in 2000, i.e slightly later than HEVE. Yet, its existence so far bears an uncanny resemblance to HEVE‘s as ABBY‘s corporate breakthrough has still a long way to go before becoming a reality. What is more, ABBY seems likely to follow in HEVE‘s footsteps in terms of transparency. Three weeks ago, i.e on Nov. 22, the Alberta Securities Commission issued a cease trade order for ABBY citing delayed filings.
Last but not least, most pumps carried out by The Stock Brainiac do not end up the way they promise. Let us consider the following two examples:
- LifeTech Industries (OTC:LTCH) -> pumped on Dec. 3 for $45 thousand, LTCH incurred a moderate first-day loss of 4.59%, followed by a series of negative runs which have so far resulted in an aggregate 33% depreciation.
- Face Up Entertainment Group, Inc. (OTC:FUEG) -> promoted on Dec 10 against $10K, FUEG lost a whopping 26% on the first post-promo day alone and has since decreased by 31%.
Considering ABBY‘s dreadful financials, what is to prevent its stock from crashing hard just like the aforementioned penny stocks?