Fresh Healthy Vending International, Inc. (OTCBB:VEND) Slides as PR Noise Slackens
For investors, it becomes clearer and clearer that Fresh Healthy Vending International, Inc. (OTCBB:VEND) is no more than the hype surrounding the shares. After initially showing a potential to hold over the $3 levels, VEND sank again.
The ticker slid back nearly 14% on Tuesday to $2.60, on dollar volumes of $1.99 million. Now, VEND is a bet of a potentially solid business model and the effects of the disproportionate PR and promotional efforts.
And the model of VEND is easily attainable by other vendors, as the healthy snack options may replace old selections. While VEND has good positions and potential revenues, a price of $2.60 has a wide berth to fall, especially with indications that VEND was targeted for short-selling. Such approaches are not unusual for overly-hyped penny stocks, as short-sellers are aware that their positions would benefit from the inevitable drop in price. For VEND, short volume has been increasing in the past few days.
Now, VEND will have a long rest and a chance for rethinking, with the long Thanksgiving weekend. During that time, more of the negatives of the company may come to light, including guilt of inaccurate franchise reporting, as well as sending unsolicited emails. VEND has several pending franchisee complaints awaiting payments.
But for some companies, even after the fallout, opportunities beckon. The Alkaline Water Co., Inc. (OTCBB:WTER) is on a general downward trend, though it manages to swing upward up to 10% in a day, as it has the tendency to bounce above the 30-cents range. WTER grew by nearly 10% on Tuesday to 38 cents on dollar volumes above $293,000.
Endeavor IP, Inc. (OTCBB:ENIP) is another ticker still looking promising, though far from its peak promotional levels. ENIP alternates days of growth and retreat, currently getting farther away from the 90-cent levels.
If you still want to hold on to VEND, keep in mind that the company has changed identities and has loaded itself with a bit of convertible debt, so there are more incentives for insider selling, even at the current prices. So far, the ticker sees a lot of downward pressure, so avoid investing unaffordable sums before the ticker reveals its truer range.