There’s a lot of talk lately about a little company by the name of Cord Blood America, Inc. (OTC:CBAI). Multiple press releases boasting a promising future, in a questionable sector seems to be keeping the attention of many traders as evidenced in Tuesdays trading session.
A Press Release that mentioned Cord Blood America was released on Tuesday, which simultaneously coincided with a plethora of different promotional email blasts from various Penny Stock Newsletter websites, sent shares of OTC:CBAI flying! The trading volume was 19.48 Million shares on Tuesday, which correlates to a 520% increase over their daily trading average of 3.14M.
While we are all for innovative, forward thinking companies, one must question the authenticity of such press releases when they directly link to a purported research company called “Five Star Equities”, which is in reality nothing more than a stock promotion website masquerading as a Research Firm. Read the fine print in their disclaimer and you’ll see for yourself. Also, the coincidental timing of this press release, put out by this bogus research firm (Based in St. Kitts and Nevis – an area well known for being out of the reach of the SEC), and the Penny Stock newsletters seems a little fishy as well. This research firm “Five Star Equities” is actually owned by a media firm by the name of “Providence Media Strategies LLC”, so we’ll let you make up your mind as to the legitimacy of this “report”.
To take it one step further, it’s also a well know marketing trick to attach a relatively small company like OTC:CBAI to a somewhat larger company as was evident in the press release when they made mention of Aastrom Biosciences, Inc. (NASDAQ:ASTM). This is sometimes done to try and “legitimize” or “Validate” the report and the supposed research firm in general.
Please keep in mind, this is not to say the Cord Blood America, Inc. (OTC:CBAI) is not a good company with good merit, but it makes you wonder whether or not they played a role in Tuesdays trading action seeing how they had no written response to what was happening in their marketplace.