Apparently stock promotions are not only a priority to the OTC and pink sheets market. Yesterday, Hotstocked received a promotion news letter on an AMEX listed company called GreenHunter Energy, Inc. (AMEX:GRH).
The leader of the started promotion is Stock Guru who had comprised a comprehensive profile of GRH in its newsletter. However, the information presented by the newsletter's disclosure is of no less importance to investors than the promotional profile.
Specifically speaking, Stock Guru disclosed in small font at the end of the newsletter that it had entered into an investor relations consulting and market awareness contract with GRH. The promoter and GRH had agreed upon a monthly cash compensation of $3000. Stock guru will also receive $4200 in 144 restricted shares based on volume weighted average share price for the last five days of each month.
Stock Guru also claimed in the disclaimer that they never sell shares in the open market during an active market awareness or investor relations program in order to avoid all potential conflicts of interest. However, sooner or later the restricted shares awarded for the campaign will hit the market.
The stock promotion comes at a moment when GRH stock is very close to a previous 52-week low. Therefore, market participant will be able to monitor whether the paid newsletter will have enough influence to save GRH from another record low value.
Green hunter energy seems like some kind green energy stock.
ReplyDelete