Nouveau Holdings, Ltd. (OTCMKTS:NHLI) Take a Plunge Towards the Bottom
Exactly as we warned you in our previous articles Nouveau Holdings, Ltd. (OTCMKTS:NHLI) couldn’t sustain its current price and dropped towards the bottom losing 55% of its value along the way. Traded shares almost rivaled the record number from Monday reaching 4.6 million.
Traders should have seen it coming when the red flags around the company are so serious. First of all we have no idea where all these shares are even coming from. According to their latest financial report filed August 13 NHLI had an OS of just 299 thousand shares, after the 1-for-800 reverse split.
The rest of their fundamentals make the situation even more depressing. Back then 
they had:
- $318 cash and total current assets
- $679 thousand total liabilities
- ZERO revenues
- $56 thousand net loss
The only reason they received so much attention from the market was the pump campaign that began this Monday. As a whole the budget of the promo reached $170 thousand, significantly more than the official market cap of the company of just $25 thousand. The latest email was sent by David Cohen through his Research Driven Investor. In it he tried to blame yesterday’s fiasco on naked short selling. But one of his earlier picks – Bluforest, Inc. (OTCMKTS:BLUF) suffered much of the same fate. RDI disclosed compensation amounting to $75 thousand.
NHLI‘s past also offers some underwater rocks. In May, 2012 when they were still called Spectrum Acquisition Holdings, Inc., the company was involved in a SEC charge for an international boiler room scheme.
Traders should always be careful when dealing with a pumped stock. Especially now when Awesome Penny Stocks have become active again and announced that their new pick is PacWest Equities, Inc. (OTCMKTS:PWEI). The newsletter should have retired when its previous target – Xumanii International Holdings Corp. (OTCMKTS:XUII), failed to reach $1 per share and is currently traded for just 3 cents, but apparently that isn’t going to happen.
