Dominovas Energy Corp. (OTCMKTS:DNRG) Falls Below A Dime

Dominovas Energy Corp. (OTCMKTS:DNRG) suffered a crushing 31.25% fall on Friday, once more dropping below a dime on a heavy volume.

This latest descent began last Tuesday, and although DNRG caught a brief respite from its terrible fall on Wednesday, the two sessions that followed cost investors dearly indeed. Still, this crash is anything but unexpected. As we’ve mentioned on multiple occasions in the past, this is just the normal reaction of the market to DNRG becoming ridiculously overbought.

Truth be told, investors did have a reason to be optimistic about DNRG. After all, scoring their “Historic Partnership With U.S. Government” was exciting news. However, the incessant praise of online commenters such as MicrocapDaily and JournalTranscript blew the whole thing out of proportion, causing entirely too much hype and hope and pushing the ticker too far up too fast.

Well, that AND the $50 thousand pump that DNRG itself paid for certainly did.

With this in mind, it is not difficult to see why it was just a matter of time for DNRG to be cut down to size. The pump may have pushed DNRG up briefly, but the fact that the company paid $50 thousand to promote its stock while it has a bunch of toxic convertible notes outstanding is a huge red flag that both long term investors and opportunistic traders should note.

Friday saw DNRG lose a third of its market cap, and if it retains any of the momentum it demonstrated in that session in today’s trading, which is more than a bit probable, it won’t really be surprising to see DNRG stock prices sink below a nickel tomorrow.