Dominovas Energy Corp. (OTCMKTS:DNRG) Falls Even Further Down
Yesterday brought Dominovas Energy Corp. (OTCMKTS:DNRG) another terrifying 29.76% plunge that left the ticker well below the dime mark.
DNRG‘s charts turned ugly on Friday, in spite of the company publishing yet another positive piece of PR. But that is hardly surprising – optimistic words can hardly stop the hype train from derailing once investors took the time to look at the company more carefully. As far as DNRG is concerned, the fall was inevitable – it wasn’t so much a question of “if”, as it was of “when”. Why?
Because its jump was purely news-induced and hype-driven. The company’s latest financial report pretty much show that it has nothing else but unsubstantiated promises of a bright future going for it:
- NO CASH ON HAND!
- Prepaids – $15 thousand
- Convertible debt – $330 thousand
- Current Liabilities – $1.1 million
- Net loss – $228 thousand
And the horrendous financial standing isn’t even the company’s biggest obvious fault. No, the most likely cause for its current descent can be found in DNRG‘s “convertible debt” section.
Said part of the report is so poorly written and sparse that at times it looks like a deliberate attempt at misinformation. Still, there is a lot a persistent reader could learn from it – for instance, the fact that a note holder called Kodiak Capital Group can convert $330 thousand into shares at prices $0.0044 or $0.0022.
Judging by the look of DNRG‘s movement in the last two trading sessions, some of those shares may have already hit the market – which would explain the sudden spike of rampant selling that is dragging the ticker back to the bottom of the charts.
Long story short – DNRG is dropping like a rock, because its monstrous gains were obviously unretainable. With this in mind, let the buyer be ware.
