Last week, Holiday Island Holdings Inc (OTCMKTS:HIHI) released its first PR in while and stated that they are planning to retire a significant part of its issued and outstanding common stock. There were some major shareholders who agreed to proposal with total of 280 million shares. The company stated that 130 million shares have been canceled and the remaining shares are expected to make their way to treasury in the coming weeks.
Holiday Island management team has stated that reducing outstanding shares will result in value creation for shareholders. The statement has been overlooked by markets as the stock has given almost all its gains in a matter of few trading sessions. The stock surged more than 50% after the announcement but from thereon has registered red trading sessions to return back to $0.00110.
Holiday Island may have failed to gain attention of investors but it surely attracted the attention of an entity known as OTP Group. It decided to bring company’s stock in the spotlight by launching a paid pump for the company. They compensated $20,000 to Stellar Media Group LLC so that they can run a promotional campaign on Holiday Island. The promotion was joined by Damn Good Penny Picks, a firm that circulated six emails to promote HIHI stock. The rest of the newsletters were circulated by Stellar Media.
As of now, the efforts of Damn Good Penny Picks have failed as the ticker has not posted any strong gains in last few trading sessions. The reaction is very much in expected lines, as fundamentally there is nothing substantial that can support an up move in Holiday Island stock.
In last trading session, the stock price of Holiday Island declined more than 21% to close the trading session at $0.0011. The decline came at a share volume of 15 million compared to average share volume of 7 million.