Montalvo Spirits Inc (OTCBB:TQLA) Crashes After Pump

2TQLA_chart.pngIt seems like the stock of Montalvo Spirits Inc (OTCBB:TQLA) can’t go up by any other means than a paid promotional campaign and that is exactly what we are witnessing in the last 3 trading sessions.

TQLA aren’t the stock that you would bet on if you were looking at a long-term investment. It has inconsistent chart movements and its price is too dependent on pump campaigns. The last promotional campaign that they had ended on July 23 and they have been sliding in a downward direction since.

The last 3 days of the past week went bad for TQLA as their stock fell a total of 17% for that time. The percentile movement in price, however, is not that big to be a bad sign. The bad sign is the amount of stock that was traded during and after the pump, which may be enough to bring the ticker even lower.

Since the promotional campaign was at its peak the number of traded TQLA shares has been more than double their average, generating high trade values and certainly filling some of the insiders’ pockets. Friday the price per share of TQLA‘s stock fell 4.11%, which is not that much, but the volume indicated there was dumping involved.

8LOGO1.pngThe last trading session of the week started off with quite a lot of shares being traded in the early hours, but after the stock plummeted to $0.69 in just 50 minutes of trading it seemed like investor ambitions were cooled off and trading quieted down. Even after the price regained its former positions the trading was held to a minimum until around noon, when more stock was dumped, slowly pushing the price down.

The total number of shares that switched hands in the end of the day came at around 907 thousand, which is a lot considering the average of 491 thousand that TQLA has. The trade value for the pump and post pump days was quite big and it even reached above $1 million at the promotion’s peak. Friday’s drop in price managed to generate a lower trade value of $634 thousand.

5AFFY_chart.pngEven though the company had an optimistic press release in Friday, that didn’t help the price in any way, which points to the fact that TQLA‘s stock isn’t a reflection of the company itself, but is rather connected to the paid promotions that the company has. With that in mind we can conclude that they remain a risky stock and you should do your due diligence and weigh out the risks before jumping on promoted stocks.

On the other side of things we have Affymax, Inc. (OTCMKTS:AFFY) who seem to be heading to new heights after an optimistic overview of the company was posted. After a long period of moving in a seemingly straight line their stock gained 13% in Thursday’s session and added 9% more the very next day moving from $1.33 to $1.45. The situation is not so rosy for InVivo Therapeutics Holdings Corp. (OTCBB:NVIV), who are having a bad period in their stock’s ascent with the last 2 sessions in the red. In Friday’s session they dropped 7% and are currently nested at $5.10.

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