Jammin Java Corp (OTCMKTS:JAMN) Taking a Detour
Yesterday went without any new press releases for Jammin Java Corp (OTCMKTS:JAMN) and this was apparently enough for the price to stop its ascend and lose around 10% settling at $0.55 and reaching an intraday low of $0.52. Should that be a cause for concern?
Well, ups and downs are not uncommon with publicly traded companies. We see the big corporations do it and when it comes to penny stocks, losses and gains are a huge part of life. You only need to take a quick look at the charts for Bio Matrix Scientific Group Inc (OTCMKTS:BMSN) and Vapor Corp., (OTCMKTS:VPCO) and you will see exactly what we mean.
Things are more worrying, however, when a sudden surge in the right direction or a massive crash is caused by some kind of stock promotion. As we wrote yesterday, JAMN have managed to stay away from the traditional way of pumping tickers – through the newsletters. In fact, the last email that we received on them is dated way back to December 2011. It’s just as well since we also wrote about what happened when a full on promotional campaign was carried out for them.
Still, while they did manage to stay out of paid pumps, JAMN do seem to look for ways of raising some awareness around their stock every now and then. We saw something like that back in February when there was an abnormally high activity around their PR department and the news were hitting the websites virtually non-stop. This managed to breathe some life into the ticker and within just a couple of weeks high demand pushed it from around $0.08 all the way up to $0.40. At one point, however, the press releases became fewer and farther in between and by April the price had already gone down to $0.25.
In the recent weeks we have seen something similar and we fear that the gains are already pretty substantial. Is there something to suggest that a fall similar to the one we saw in March is about to happen again?
Well, on the upside, JAMN appear to have a more solid foundation right now. They issued their latest quarterly report last Friday and traders were happy with what they saw. They were also happy with the interview that SmallCapVoice did with JAMN‘s CEO, Brent Toevs. We read through the financial statement, listened through the interview and we can see that, indeed, the company seems to be moving in the right direction.
What worries us, is the fact that sessions like the one from yesterday do appear every now and then and while a drop of around 11% is not that dramatic, the high volume suggests that quite a lot of stock was sold. Who could have done it?
Well, there’s no way of finding out for sure, but we mentioned in some of our previous articles, that Ironridge Global have recently converted some debt into a total of 12 million JAMN shares. Whether it was them pushing the ticker down yesterday is unknown, but the fact remains that the raised awareness certainly increases the demand, which means that some people might see opportunities for a profit. The problem with that is the fact that the ones suffering will be the long-term shareholders. Which is indeed a shame since JAMN seem to be on the right track.
If they really want to be taken seriously, however, they will need to give it their best shot at ensuring a more steady stock performance. And doing something about their corporate office which, as we wrote earlier, seems to be shared with another penny stock venture – Writer s Group Film Corp (OTCMKTS:WRIT) – might not be a bad call as well. These things will certainly boost the traders’ confidence and it will minimize the number of depressing sessions similar to the one we saw yesterday.
