Nestor, Inc. (OTCMKTS:NEST) Crashes. Was a Misunderstanding

Last Friday, an obscure, no information, pink sheets company called Nestor, Inc. (OTCMKTS:NEST) ended up being one of the most actively traded stocks on the OTC. It recorded a phenomenal 8,438.46% increase in price.

Yesterday it slumped 50.45% down, closing at $0.055 per share on approximately 11.2 million shares. It’s not likely to stop there, although most people who got in probably managed to get out, and such high volumes aren’t very likely.

We constantly try to emphasize the importance of doing the due diligence, and while not a paid pump job, NEST is a prime example of how costly it may be to skip on the due diligence.

In this case it turns out the whole thing was a misunderstanding. Last Friday, former VP, Al Gore, said in an interview for The Daily Ticker, that “Nest is a terrific company,” and that he was an investor in it. Such statements can do a lot for a company’s stock.

The thing is, he wasn’t speaking about NEST, and it takes just minutes to do the due diligence and realize that. Mr. Gore said that the company’s product was a thermostat. NEST has nothing to do with thermostats. NEST used to be involved with traffic systems, but it stopped reporting anything more than 3 years ago.

Additionally, the former VP said in the interview that the company had been started by Anthony Fadell. A quick search immediately shows the “Nest” Mr. Gore was talking about, and it’s a private company – Nest Labs, Inc., having nothing to do with Nestor, Inc. (OTCMKTS:NEST).

Speculative traders had a chance to make a quick profit with the confusion. And probably some who got in and out on Friday did. As for those, who didn’t get out, they will probably do the due diligence next time.