Stockhouse Short Report: Sunpeaks down 58.5% despite huge promotion

Sunpeaks Ventures, a heavily-promoted former Canadian energy stock, finally went into freefall Wednesday and traded as low as 65 cents. Short sellers have finally gained the upper hand in the battle for Sunpeaks Ventures Inc.

Stock Forum) a former Canadian energy shell which was featured in a Stockhouse Short Report last week. In our April 10, 2012 report, we told you that Sunpeaks had soared on the back of a massive promotion campaign, even though the U.S. Bulletin Board-listed company had virtually no money and zero historical revenue. In the last five trading days, Sunpeaks has appeared in 540 newsletters, many of which have been paid to tout the stock, according to the Stockpromoters.com website. But after reaching $2.30 at the opening bell, Sunpeaks lost 58.5% of its market value on Wednesday, closing at 92.5 cents and leaving the company with a market cap of $388.9 million, based on 420.5 million shares outstanding. Earlier in the session, the stock traded as low as 65 cents. Sunpeaks is a former oil and gas exploration shell which maintained an office in Calgary and was headed by Scott Beaudette, the company's sole director and officer. That was before it was acquired in February (2012) in a reverse takeover by Healthcare Distribution Specialists LLC, a Maryland-based distributor of the Clotamin multivitamins brand. Continue reading this article

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