As can be seen in the accompanying chart, the previous pump, North Springs Resources (NSRS) by these promoters eventually dumps hard and all those who were late to the game got burned badly. That being said, the same chart also shows the fairly reliable occurrence of big bounces following all of the major drops. As a result, my suggestion to those thinking about playing this stock, to only consider buying the major drops as they offer the best risk reward. I'm not talking about the slight dips intraday, I'm only talking about the big panics when the Time and Sales (T&S) and Level II (L2) are completely red because everyone is trying to get out as peoples stop losses get triggered all at once. Wait for considerable to support to develop following these panics as often times the stock will bounce very slightly for a minute or two before continuing to plummet.
In terms of fundamentals, the company has a market value of $250,197,946 as of March 9th with 420,500,750 shares outstanding and a float of 145,500,750 as of February 22nd. Fundamentals for this company aren't worth much since it's obvious this company is worthless. This can be summarized by the fact they currently purport to be a drug company but intended to be a mining/natural gas company (they are still classified as a metal mining company). A quote from their February 8-K: "Since inception we have had minimal operations and as such we were considered a 'shell company' as that term is defined under Rule 405 of the Securities and Exchange Act of 1934. It was our initial intention to be a as an independent crude oil and natural gas exploration company; however, due to the lack of revenues and adequate financing, we abandoned our business plan and began seeking out potential acquisitions, joint ventures and/or strategic relationships."
No comments:
Post a Comment