Raystream Rises As StreetSweeper Uncovers Oddities

Shares of Raysteam RAYS, a maker of video compression technology, are up almost 9% today despite a piece by TheStreetSweeper highlighting the fact that the open-source software sold by the Texas-based company is substantially available elsewhere for free and a string of questionable endorsements of the stock from compensated parties. Previously, Raystream CEO Brian Peterson proudly declared that the company's “disruptive technology could forever alter the way business is done online.” Peterson's announcement further explained that this “proprietary” technology “could reduce the bandwidth required to stream HD video online by up to 70%,” TheStreetSweeper reported. The report details a relationship between Raystream and a company called Unlimited Trade that promoted the stock. Unlimited Trade owns 5 million shares of Raystream and paid millions for a promotional campaign designed to increase the value of those shares, according to TheStreetSweeper. Also dubious is Raystream's $89 million market value at the time of the piece, but that comes with just $200 in revenue, TheStreetSweeper reported. In addition to Unlimited Trade, several other sources were compensated for touting Raystream, including Stock Market Authority, which received $150,000 for issuing bullish calls on the stock, according to TheStreetSweeper. Calls and an email to Raystream were not returned, TheStreetSweeper notes in its piece.