In last trading session, the shares of Cloudweb Inc (OTCBB:CLOW) recorded strong gains and managed to close near $6. However, in today’s session, the stock opened in red and was seen trading close to $5.50 at the time of writing. This volatility is largely result of a landing page and video pop-up introduced by Finest Penny Stocks. Kethie Richie, the Editor of Finest Penny Stocks, termed Cloudweb stock as his red hot pick of the month.
The buzz
Analyzing further, it was seen that the fine print under the pop-up video focusing on Cloudweb claimed that any name referring to its editor, copywriter, analyst, or any other name or title is purely fictitious and proclamations from such fabricated characters are not reliable.
Finest Penny is not the only firm launching such kind of promotional matter in market, in fact, the other outfit that has been following the same process is Stock Tips with the fictitious editor as Mike Statler. Finest Penny Stocks have received compensation of $220,000 in order to promote Cloudweb stock. There are many other outfits that have joined the wagon, and are stated to get lump sum amount for promoting company’s stock.
The impact
The promotional campaign has certainly been a success as Cloudweb witnessed active sessions on impressive volume this week. In fact, in last trading session, the stock explored as the average traded volume crossed $8 million. The stock has moved from levels of as low as $0.06 to more than $0.50 in just three trading sessions. As a result, the market cap of Cloudweb crossed $180 million, which seem ridiculous for a firm with no current financial data made available for investors.
Cloudweb completed the acquisition of a web hosting company few days ago. However, the performance of the new subsidiary has yet to be revealed. The only information that the investors have is that its hosting business recorded average revenue of over $58 thousand in last fiscal.
