Shorters Wake CrowdGather, Inc. (OTC:CRWG) Up Again
09 Sep 2010

CrowdGather, Inc. (OTC:CRWG) solid record of promotions has made the share price jump back and forth this year. Yesterday the jump was up again, but it seems that this time the shorters made most of the trading.

CRWG gained almost 10% and closed the market at a price of exactly $1. 64% of the 151,000 share volume have been shorted. The last disclosed promotion for the stock was in the middle of August and it had cost a third party $20,000. That third party was not disclosed, but it seems that it needed the short-term appreciation of CRWG shares.

Previously, $200,000 have been paid in June for the online advertising efforts of another stock promoter, and as seen on the chart, after that traders did not pay much of attention to the CRWG alerts and the share price downgraded the trading levels, but kept missing a definitive direction. Only the increased volatility remained.

CrowdGather manages online forums and message boards for people with special interests, which basically offers a broad spectrum of opportunities to make money through creating a social network with enough of registered and regularly participating users. Though, the main option to generate revenues that CRWG management with its highly praised knowledge and experience has found so far is the placement of ads on the company’s website and the subscription fees from the users.

Some revenues are thus coming in, but the business has never been profitable. So far the company has financed itself solely through selling periodically new shares of common stocks. Obviously, CrowdGather will have to modify the business model and come up with some new ideas of how to utilize its virtual communities, since people rarely go there to click on ads and are even more rarely willing to pay fees for using an online forum.

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