The weekend brought not so good news for American Green Inc (OTCMKTS:ERBB) shareholders. After ERBB had posted its lowest volume in over a month last week, someone decided to put back life in declining shares and paid for a series of email pumps sent out over the weekend.
The pump details
The entity that decided to bring back life in American Green shares was none other than Meridian Ventures LLC. It is the third entity that gave up to $20,000 to a number of promoters to promote ERBB, with a total of twelve email touts, sent out at the weekend. The most familiar names in the pumper list that sent out emails are Darth Trader, also forwarding email alerts under the name ‘Stock Psycho’, who revealed $20,000 payment in disclaimer and another company named as OTC Equity, who received only $3,500 thousand by Meridian to promote ERBB.
The investors who are not acquainted with how paid pumps function, they are, in general meant to create a spike of interest in a company’s stock. The main objective is that the third parties who have discounted stock can offload it. It is easy to imagine parties who have discounted American Green’s shares as it issued millions of convertible debt in last few years, with almost 109 million shares issued at conversion price of $0.0005 in the three months ended December, 2014.
The volume buzz
The pumps mailed out seem to be working in respect to volume popup. As of now, the chart reflects a picture much evident after front=loaded promos. The stocks of American Green Inc (OTCMKTS:ERBB) opened with a big gap up only to be followed by a steady decline through the rest of the trading session. Such a move traps all the investors who bought ERBB shares at the open. In last trading session, ERBB declined almost 1% to close at $0.0101.