Cereplast Inc (OTCMKTS:CERP) Gaps Up In Tuesday’s Session
Today is a big day for Cereplast Inc (OTCMKTS:CERP) and their investors as everyone is expecting the conference call, the topic of which will be the financial results for the second quarter of this year. Since this was announce od August 9 there has been a lot of hype around the stock of CERP and they are jumping in price every day on high volumes of traded stock.
The latest results are also looking great after a few good sessions in which CERP gained a total of 92% in price over the course of 3 days after they announced the conference call and the upcoming Q2 financial report.
After the successful Friday trade session the trend continued this week with Monday ending up with a 35% increase in value on a high volume. Yesterday also went well for CERP‘s stock price after they added an additional 15% to their value closing the day at $0.0279.
The volume yesterday was even greater than that of the previous sessions and generated quite a lot in trade value. The dumping fiasco with which the day started is probably the reason why they didn’t manage to have a bigger percentile movement in an upward direction. After all, CERP started the day gapped up with a price of $0.281 per share, which was higher than what they closed at.
The total amount of shares that switched hands in the end of the day came at 78 million, which is a lot considering the 12.5 million average of the company. This helped generate an even higher trade value than the 1.3 million from Monday making the total amount come at $2.1 million. Will the stock continue to move in the same direction after the report is released, however.
We seriously doubt that, because as we stated in our previous article about CERP their stock had a similar movement when people were anticipating the report for Q1 to come out. After all there is still the announcement that they are expecting $1.7 million in revenues for the first six months of this year and as noted in our previous article that means that they have around $750 thousand in revenue for Q2, or a 22% decrease from the previous quarter.
A decrease in investor interest might also be expected, because at the moment the insiders who know of the company’s developments might be the reason for the massive dumping of stock that we are witnessing in the last 3 trading sessions. In any case be sure to do a lot of due diligence even if you are thinking of a short-term play and be ready to take a big risk.
Another big winner from yesterday in terms of trade value was Medical Marijuana Inc (OTCMKTS:MJNA), who traded a massive amount of 47 million shares making the value for the day come at $9.1 million. In the meantime, however, they lost 32.93% of their value and closed at $0.1556.
It seems that after the 2 great sessions in Friday and this Monday for the medical marijuana stocks of MJNA and Growlife, Inc. (OTCBB:PHOT) they are both heading down. Even though PHOT‘s stock gapped up yesterday and opened at $0.0435 they started dropping and closed the day at $0.04, which was not such a big loss considering their previous days ending price was $0.41. The trade value was decent and came at $367 thousand with a total of 9 million traded shares.
