Now that the previous big pump & dump, Genova Biotherapeutics (GVBP) has been halted by the SEC, it is time for the next big pump. I present to you, ladies and gentleman, Emergent Health Corp (Pink: EMGE). The stock is up 120% in two days now on modest volume of 700,000 shares per day. Why? Because they have a magic potion that will “revolutionize the vitamin business.” This magic potion is some random chemical or chemicals that they will add to a multivitamin. What will it do? Who knows? The company’s explanation makes no sense:
The company plans to introduce an adjuvant formula that enhances existing vitamin products currently on the market to assist in the production of normal cells.
If this were a legitimate product and not snake oil, the company might point out that the Vita-Stim Adjuvant(TM) improves the body’s absorption of vitamins (something that would be quite helpful and potentially lucrative). Instead, the company had this to say:
Our Vita-Stem Adjuvant(TM) compound stands to revolutionize the whole vitamin industry, as breakthrough adult stem cell based discoveries are further studied and introduced, providing high potency, scientifically researched regenerative properties to existing vitamin brands. It is predicted that today’s vitamin products will eventually become obsolete.
Yes, my friends, this company is putting stem cells into vitamins! Either that or they just cobbled together a bunch of pseudo-scientific babble for their press release (that seems more likely to me). This is a short on weakness or a long on strength, although considering it has already had a couple up days I probably won’t try taking it long. (Check out the company’s financials [pdf]: they had $90,000 in revenues in the past 6 months yet have a $40 million market capitalization, per Pinksheets.com)
ILI – They had really sketchy positive drug-type news on a small study. I would short on red, long on green. I am not sure which way it will go so I probably won’t trade it.
Disclosure: No positions. I have a disclosure policy.