This one is an interesting one, and I almost wrote about it Thursday night (last night) but after digging around, I saw it was most likely a promotion or advertisement by an investor group with influence due to the size of their following. But after today’s continued excel, I had to do this article.
The Optics
When I first notice a stock way up, I assume NEWS hit the wires– in this case no. When I gazed at the company news, it showed November 2nd of 2017 to be the last press release issued by the company. It read, “Data Storage Corporation (OTCQB:DTST) (“DSC” and the “Company”), a provider of diverse business continuity, disaster recovery protection and cloud solutions, today announced its formation of Nexxis Inc. (“Nexxis”), a new subsidiary of the Company which will focus on the development of next-generation voice and data services intended to help companies speed up their communications, increase revenue and reduce costs.”
Ok, so no news. Next step, lets check the good ole message forums. To my surprise there were no due diligence posts “stickied” on iHub, a very popular internet investment forum, and the handful of posts there contained very little insight other than it was a “pump” by an investor who calls himself “The WOLF”. A stickied post or “pinned” post is one that shows up at the top of the all the others rather than in numerical order because it was deemed useful or important by the thread’s moderator/admin.
So, some investors alluded to the stock rising prior to WOLF’s announcement or post that he liked the company, which irritates investors knowing they were “fronted loaded” upon. In my opinion, there is nothing wrong with front loading as long as it is disclosed you are LONG and how many shares you hold. It then is a matter of ethics in which that influencer chooses to sell to his followers or hold long enough for everyone to share in the potential run.
Next I hop onto twitter, a social media platform that is wonderful for following posts in a real-time alert style platform from whomever you want to hear from. Doing a search of $DTST revealed both The Wolf (who has 8,122 followers) and Stock Wolf (1,817 followers). Are they one in the same? Good question, but one is east coast in NY and the other is listed out west in LA. Yesterday there was the mentioning of the $DTST, but due to twitter’s 144/288 character limitation, only so much DD (due diligence) can be listed. I am going to assume The Wolf emailed his followers that had joined his database of interested investors via his website at http://thewoldofpennystocks.com
I have not subscribed, nor have I seen a subscriber post on a forum, the due dilligence/ creative piece delivered to investors.
I did notice today though there was a link attached to a TWEET where we finally get to see what created the buzz. SEE HERE
Disclosure: We hold no position, nor were we compensated for the mentioning of the above company or social media account(s).