Life Stem Genetics Inc (OTCBB:LIFS)’s Pump is Really Going Strong
On the face of it, things are going along pretty well over at Life Stem Genetics Inc (OTCBB:LIFS). The business plan is interesting and the stem cell sector is almost certainly going to experience huge growth in the future. Investors seem genuinely interested and the ticker is absolutely rocketing up the charts, smashing through 52-week highs virtually every day.
As we noted in our previous articles, the financial statement doesn’t look like much, but it would appear that even on that front, LIFS have a solution. About an hour before the start of today’s session, they announced that a private placement has been closed. The company will receive $1 million in exchange for 1 million common shares as well as 1 million warrants exercisable at $1 per warrant. It’s only normal to assume that the unnamed warrant holders are bound to exercise them because, let’s face it, who wouldn’t want to own more stock in a company that is showing such remarkable progress?
We know who – the people who have taken the time to do some proper due diligence.
You see, having a stock that has grown by about 53% and has registered only two red sessions in a month is all well and good, but when you have in mind that it’s pushed up the charts by nothing more than a paid promotion, things are starting to look a bit sketchier.
If you have been following our articles closely, you know that there’s a rather big awareness campaign running for LIFS. It started with a report put together by Contrarian Press and paid for by the company itself which got distributed around landing pages for a disclosed budget of $1.78 million. Some emails came in to support the hype and it would appear that over the last couple of days a new player has joined the party.
Wall Street Revelator and their very own Andy Carpenter have set up not one, not two, but three more landing pages to help the promotion run stronger than ever. According to the disclaimer, Mr. Carpenter has pocketed $7,500 for his optimism (the total promotional budget still stands at $1.78 million) and, just like Contrarian Press, he sets an “infinite” price target on the ticker.
Mr. Carpenter’s inability to come up with his own amusing benchmark for LIFS is somewhat understandable since he is also quite busy with the hard mailer promotion for Fresh Healthy Vending International Inc (OTCBB:VEND), which, as we wrote earlier today, is starting to pick up steam.
And while we’re on the subject of Mr. Carpenter’s pumps, we might as well give you an example of his previous, rather spectacular failures. Montalvo Spirits Inc (OTCBB:TQLA) was picked up by Wall Street Revelator back in the summer and the promotional materials suggested that the ticker could reach as high as $10 per share. Now, five months after the campaign, TQLA is sitting at $0.20 which is around 80% below the hype-induced levels.
Even if those red flags (as well as the ones outlined in our previous coverages) are not convincing enough for you, we should probably mention that there has never been a riskier time to play a paid pump. The SEC have been unusually active in chasing after promotional campaigns over the last few months. PacWest Equities Inc (OTCMKTS:PWEI), Pacific Clean Water Technologies, Inc. f/k/a Unseen Solar, Inc. (OTCMKTS:PCWT), Press Ventures Inc (OTCMKTS:PVEN) and Sovereign Lithium Inc (OTCMKTS:SLCO) all got temporary trading suspensions which led to quite a lot of people losing quite a lot of money.
If the regulatory organ decides that some more interference is needed, LIFS becomes a prime candidate for the axe, not least because of the enormous promotional budget. Make sure you tread carefully and consider all the risks before putting any money on the line.