Paivis Corporation: The Ultimate Penny Stock Short Squeeze
While penny stocks are usually not covered, this one cannot be passed over. Shares of Paivis, Corp. (OTCBB: PAIV) have doubled today, up $.08 to $.153 on heavy volume of 48 million shares. If today's percentage gain is shocking, the stock has surged an unbelievable 15,000% since May 22. The move higher began amid confusion, when on May 22, the company, under a merger agreement issued shares to be received by the Jupiter Shareholders as restricted securities defined by Rule 144. The Depository Trust Company confirmed no allocation of any shares had taken place by them due to restricted nature of those shares and the fact that the merger shares were not physically received by Depository Trust Company for further allocation. However, judging by the volume of billions of shares being exchanged, it appeared at the time that those shares had been accidentally handed over to customers by certain brokerage firms. Then on June 29, the company issued a clarification, stating that Jupiter Shareholders must surrender their Jupiter common share certificate to the Paivis transfer agent in order to receive their merger shares certificate. All the while, the price began to rapidly increase. To this date, it appears that the marketprice is reflecting a short squeeze because the merger shares of Paivis were not supposed to be issued and consequently and someone is paying the ultimate price of having to purchase the shares on the open market to cover the share imbalance.
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