Corporate Universe, Inc. (OTC Pink: COUV) has been soaring to new highs lately. It’s part of a larger trend where dozens of stocks, in the typically illiquid OTC markets, have come to life in recent months.
At the beginning of December 2020, COUV was trading near $0.02 per share. Yesterday it closed at $0.84, an increase of 4,200%.
The dollar volume for yesterday’s trading session exceeded $15 million as amateur traders have been drawn to these high-risk/high-reward stocks.
There have been plenty of stocks in the OTC with oversized gains the past few months. But there’s a hidden danger that the promoters of these stocks often fail to disclose.
Some companies that trade on the OTC markets have been known to make misleading statements.
Penny stock trader and teacher Timothy Sykes warns his followers on Twitter that OTC stocks can be extremely dangerous to trade. He encouraged his followers to “stay safe” and be “cynical.”
The $COUV halt should help you see how dangerous these OTCs are, no matter what promoters say about $TSNP $ALPP $OZSC $ENZC $ASTI $OPTI $CELZ $GAXY $CLWD $SNPW $VDRM comparing them to blue chips like $PYPL $AMZN $AAPL is laughable, stay safe/cynical, watch https://t.co/KhqHFIe64c
— Timothy Sykes (@timothysykes) February 10, 2021
After the markets closed yesterday, the U.S. Securities and Exchange Commission announced it has ordered a 14-day halt of trading in COUV stock, “because of questions regarding the accuracy and adequacy of information.”
In the release, the SEC reports it’s investigating two claims Corporate Universe, Inc. made in two separate December press releases, citing:
- “A statement made by COUV on December 1, 2020 that it is currently selling a mask proven to filter 98% of COVID-19 particles and is scientifically proven to kill COVID-19 particles.” (See the COUV release here.)
- “A statement made by COUV on December 16, 2020 that it has entered into a definitive letter of intent to acquire a company that holds 30 patents related to carbon ion battery technology.” (See the COUV release here.)
The SEC also appeared to echo Sykes’ warning, saying that market participants “should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.”
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