On Friday, the stock price of Reliabrand Inc (OTCMKTS:RLIA) jumped more than 5% to close the week at $0.0175. It was a second consecutive strong trading session and importantly it came at a massive share volume of 12.53 million compared to average share volume of 772,230.
Richard Ellis has been in the penny stock promotional world for quite some time now. Last week, he reported that Reliabrand is his latest stock pick. His previous promotional campaign for ENTERTAINMENT ARTS (OTCMKTS:EARI) did fetched him $50,000. However, the pump proved to be a massive failure and gave a blow on his reputation. In fact, after the pump EARI plunged and lost nearly 54% of its market value in a single week.
In case of Reliabrand, the promotion campaign has worked much better. For record, the traded volume was so massive that the stock was included into the list of most heavily traded OTC stocks in last week. On Thursday, the stock recorded a gap up opening at $0.0054, and then made an intraday peak of $0.0268. It eventually settled at $0.016, which was almost 435% above the closing price of Wednesday. This massive up move marked its first close out of sub-penny region in last four months.
The momentum of Reliabrand stock confirms that Ellis’ promotional campaign for RLIA has been a huge success. But does it indicate that investors should become a part of this frenzy buying? The matter of fact is the regulatory bodies don’t seem impressed with the pump. Just hours after the market close, the Canadian province stated a Cease Trade order on RLIA stock.
Also, the OTC marketplace reaction was no different which indicates that the company’s OTC profile now boasts a Caveat Emptor sign. It is evident that there is a need to proceed with caution as the outfits’ presence tends to make stock moves more volatile than normally recorded.
Reliabrand Inc (OTCMKTS:RLIA) experienced a highly volatile day on Friday and finally ended the last trading session with a gain of 5.42%. The volatility also resulted into a lot of shares changing hands as evident from the volume of the day surging to 12.5 million against the daily average of 1.8 million only. From a broader perspective, all this volatile movements carry little significance as the stock has been moving in a broad range for the last 1 year. As long as the major resistance area around $0.03 and the major support area around $0.003 keep containing all the action, no significant movement can be expected.