This morning, Everock (PINK:EVRN) was recommended by EpicStockPicks.com after a period of built up tension. The stock could go wild for the day, but a quick analysis shows no further potential.

When a stock is selected by a newsletter service the price usually goes up on the first day. It happened with Epic Stock’s previous pick SLMU and their other referenced stocks as well. Since the service suddenly increases demand the price can go up an incredible amount over a short time.

Coincidentally, along with Epic Stock picking the company, Everock has also published a press release with an update on its operations, stating that the company is launching an aggressive marketing campaign.

Everock operates as a distributor of natural garment products. Financially, the company is facing hard times: the balance sheet is heavily leveraged and there were no sales over the nine-month period ended this March. The newest press release, however, talks about an increase in the sales of their Nature’s Peak product line. No proof has been provided though.

As we have disclosed a couple times in the past, the company is known for paying to promoters. The price is on a strong downtrend and there are no fundamental reasons for it to behave otherwise, so any appreciation will be short lived.

Epic Stock Picks did not provide any background information on why this stock should be among the winners.

EpicStockPicks.com operates a gathered through its website’s system mailing list and sends out periodical messages with trading recommendations. The business model involves getting compensations from various public companies for investor awareness services. Basically, it’s a marketing company, which offers free stock picks service and which is there to build up targeted audience database.

Disclaimer on Epic Stock Picks website states they do not accept free trading shares from the covered companies, which means Epic Stock does not cause a pump-and-dump scenarios. However, they do trade the shares on the market.

Most often, the recommended stocks are one-sided described as undiscovered profit makers holding huge potential, but somehow overlooked by the vast investor community. In many cases this is not true. However, by operating the mailing lists EpicStockPicks.com are able to create short-term fake price surges on the excitement of novice traders.

Take a look at what happened to some of their latest stock picks. The most recent one, Salamon Group Inc. (OTC:SLMU), went up over 140% out of the blue. But as the trading volume quickly faded away, some people might have been stuck with shares they can’t get rid of without making huge losses.

As this stock traded a similar pattern in the past, it can be assumed that a slow decline is to follow from here.

Older picks clearly show a pattern of lightning fast appreciation and following not a bit slower drops. Scientigo, Inc. (PINK:SCNG), Young Broadcasting Inc. (PINK:YBTVQ), Mistral Ventures Inc (PINK:MILV), Stratton Holdings, Inc. (PINK:STHG) all presented only short term gains and thus hold excess risk of loss if the turnaround is missed.

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Yesterday, Everock Inc. granted investors an almost 50% return over only two days. The volume traded hit a new peak.

This was the result of an active EVRN stock promotion campaign and the company’s appreciation of the work of its master broker.

Yesterday, EVRN stock entered the market with a higher price, than it closed the day before. The stock jumped by $0.0022, or 23.7%, to $0.0115 in the session.

More than 49 million shares changed hands in expectation of huge gains. The new volume peak beat the record from the end of March with 3 millions shares.

The PR campaign of EVRN these days had two dimensions. One of them was in the field of developing consumer awareness of the Nature’s Peak brand through press releases. The other one was in the field of developing shareholder awareness of the EVRN stock.

The stock promotion was a continuation of March promos, after a short “holidays” break.

As seen in chart here, the EVRN stock stir, started few days after Easter holidays. At the beginning of the month, EVRN paid three promoters to keep the interest of investors. Each of them received compensation of twenty thousand dollars.

This is not the whole story. EVRN goes further and will compensate twenty five thousand dollars “Top gun stock picks” for the promotional campaign from yesterday.

The above chart clearly shows how quickly huge gains could be and how big the losses are if only a stock alert was the basis for decision to invest in EVRN.

EVRN press releases from this week about company’s the web page improvement in the name of the customers, like also the initial order of 240 cases for the Mid Atlantic stores, were like spices, which added value to the EVRN stock stir.

All of these stock promotions, related to the alerts and the company’s news sent via Internet quickly shot up the EVRN stock price. Again, the known already scenario since the end of March came into force. Then, the shorters also entered the game. It’s a matter of time to see how this will play out.

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