GROGENESIS INC (OTCMKTS:GROG) is one of the OTC traded firms that is another target of stock promotion. It is expected that 40 million free trading shares could be dumped into the latest stock promotion. The firm behind the stock promotion is Capital Financial Media which has a terrible track record of promoting the stocks.

The financial picture

As is mostly the case with the hyped-up stocks, it takes just one glance at the balance sheet to conclude that the $70 million market cap that GroGenesis commands is not justified, With $271, 830 in current liabilities and just $20, 806 in current assets, the prospects of a strong performance looks dismal. There is little revenue, high debt and no strong business. The recent surge in volume is due to bullish promotional mailers.

The momentum

The trading in GroGenesis started witnessing increased volume since March 5, 2015. It was during the same time, the promotional landing page of the company was introduced. It is evident that there are some participants who are interested in increasing public awareness for GROG stock, otherwise who would spend $150,000 per week on promotional emails. The main objective is to bring in buyers so that the shares can be liquidated without any effort. “Pump and dump” plan has always remained lucrative for insiders.

The takeaway

The momentum in share price of GROGENESIS INC (OTCMKTS:GROG) will not be different than the other stocks that have been the target of stock promotions. It was evident in the yesterday’s trading session as the stock declined more than 27% to close the trading session at $0.620. The drop came at the back of strong volume of 473, 696 almost double the average volume of 212, 657. The financials and the past of promotional emails suggest that it is better to stay away from GroGenesis stock at this time.