American Green, Inc. (OTCMKTS:ERBB) Is Crashing Again

American Green, Inc. (OTCMKTS:ERBB) supporters had some cause for excitement this week, as company stock shot up in double digits for two sessions in a row. However, their joy was short-lived – the ticker plummeted 14.19% down yesterday.

Looking at the charts, perceptive investors are apt to notice that this is not the first time the ticker’s exhibited this sort of behavior recently. In fact, it seems to have become the norm with ERBB – the same thing happened mid October and around the beginning of November. The ticker was flung sky-high by a sudden burst of hype-based buying, then it came crashing down. So why does that continue to happen?

It is all quite simple really – the OTC Markets has plenty of opportunistic traders, as well as investors willing to bet their money on hype and hope alone. A spike of activity from said investors, possibly caused by the occasional piece of optimistic and misleading PR published by the company, is more often than not what causes ERBB‘s sudden stock price jumps.

At the same time, the market value gains those jumps afford are non-retainable, because as soon as heads cool, people realize that ERBB is still not going anywhere.

No matter how enthusiastic its supporters are and how loud they cheer, ERBB is still a company that spent the last year or so lying to investors about the roll-out date of its flagship product, as well as its general state of affairs.

Furthermore, in spite of all the alleged progress its PR announces, ERBB still has huge amounts of toxic debt and this problem doesn’t seem to be going away. in fact, it just seems to be getting worse every time we check on it.

This is why, despite all the cheering, ERBB is on its way down again – and why its tumble will probably continue until the price gains it made during its latest jumps are a thing of the past.