Wednesday, December 24, 2014

What a Pump Looks Like

I've recently taken a short position in OBCI, which has rallied after it paid to be interviewed by CEO LIVE.  OBCI has now issued  more press releases from the interview in a transparent attempt to inflate the company's stock price.  The headline reads:

"Ocean Bio-Chem, Inc. Ceo In Interview Sees Excellent Prospects For 2015"


In the press release, the company's "excellent prospects" are due to the drop in  gas prices . OBCI reasons that  people will use their boats and R.V.'s  more frequently and thus, purchase more of the company's marine cleaning products:
The drop in gasoline prices means that boats and RVs are more affordable to use. We have expanded our sales and marketing departments to take advantage of prospects for 2015
  The company's reasoning is pretty attenuated and certainly not justification to issue a press release-- unless of course you are attempting to drive the stock price up. This appears to be the case after the news comes out, we see the company being bid up: look at that volume.  2 shares. Someone wanted a higher print and was willing to pay $9.34 for that print. 






1 comment:

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