Northumberland Resources Inc (OTCMKTS:NHUR) Crashing after Second Spike
Northumberland Resources Inc (OTCMKTS:NHUR) had seen very few trading sessions before early March. Since then the price has gone from less than $0.30 to more than $1.70 per share.
Yesterday was a tough day for NHUR shareholders who saw their stock plummet 18.31% to a close at $1.16 per share. The volume reached more than 2.5 million shares – the second highest after the 2.8 from the previous huge crash on May 21 when NHUR crashed 30% in just one session.
The reasons for the previous spike and the previous crash were much easier to identify. Back on May 13 the company announced it was drilling a new well on one of its leases, and claimed that could “increase the Company’s revenues by $1 million per year.”
A week later NHUR published its quarterly report, which apparently fell short of traders expectations and triggered the crash. NHUR reported:
- $5,423 in cash
- $106,823 total current assets
- $216,319 total current liabilities
- $39,318 in revenues (nearly 80% decrease year over year)
- $152,691 net loss
In addition to the disappointing numbers, the report showed that long before the stock of NHUR had started active public trading the company had issued millions of common stock shares at extremely low prices, which were further decreased by the 20 for 1 forward split from late 2011.
Last, but by no means least, there is another point of concern especially troubling in combination with the previous one. NHUR has been pumped by PubCapital Inc, an entity which claims it’s managing a $3 million budget. Do not make any decisions regarding NHUR before doing thorough due diligence.
