China Health Resource, Inc. (OTC:CHRI) Explodes on Drive-By Free Pumps

CHRI_chart.pngYesterday China Health Resource, Inc. (OTC:CHRI) had a smashing day on the market, gapping up and closing the day on about as many shares traded as all of March so far. The reason for the sudden surge can be attributed to a round of pumps launched by a number of promoters.

The first pump mails of this round came after hours on Tuesday, with almost a dozen more yesterday. There were many outfits touting CHRI stock, including Psycho Penny Stocks, Breaking Bulls, Marquee Penny Stocks and Massive / Monster Stock Profits. The pumpers disclosed zero compensation received in either cash or shares, possibly touting CHRI in an effort to improve their track record.

The promoters seem to have run the promo for a single day, announcing that CHRI yielded potential gains and that a new alert is coming today. Sadly, the daily movement of the stock seems to have been heavily front-loaded as the gap up at the open left almost everyone buying yesterday at a loss or at a breakeven point at best, as even though CHRI closed 76% up, that was still well below the open and at the level of the day’s low.

Traders who participated in the shift of over 12 million shares yesterday may be worried as all the pump mails came in the morning hours, with the only one coming after the close yesterday stating that it’s been a good run but it’s time for a new pick. Such drive-by one-day promos, even when they’re not padded with a ton of cash as compensation, tend to leave just as many burnt investors who decide to buy on a day where they can barely break even. With no extended promoter support the future of the stock is uncertain at best.

Despite the touts of CHRI‘s financial performance, traders may take note that the company operates out of China and its financial statements are not exactly open to SEC inspection. In the words of Mr. Lewis H. Ferguson, a member of the PCAOB, as quoted by the Financial Times: “Under Chinese law, it is illegal to remove audit work papers from China. At the present time, Chinese authorities will also not permit any non-Chinese regulator to conduct inspections on Chinese soil.”

IMNG_fail.pngCHRI‘s website is also completely empty, containing nothing but company filings. The Products page yields a picture of a pill containing what looks like a DNA spiral and nothing else. The Investor Relations page contains a picture of a stock chart and no text. The Operations section of the site presents viewers with only a picture of a laboratory.

Investors are left hoping CHRI doesn’t follow in the steps of previous pumps run by the same promoters. Breaking Bulls ran a promo on iMing Corp. (PINK:IMNG) in early February. After a brief run the stock crashed hard and is currently 70% below the peaks reached during the pump, well below pre-promotional levels.

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