Novagant Corp. (OTCMKTS:NVGT) Fails To Move Despite Widespread Pump
We first started receiving email alerts touting the stock of Novagant Corp. (OTCMKTS:NVGT) last Thursday after the end of the session. As a result of the artificial hype on the very next day the company was able to post its first traded volume in nearly a month. Over 544 thousand shares were exchanged leading to a gain of 23.7% and a close at $0.495.
The next two sessions though went horribly wrong and NVGT crashed hard wiping a third of its price. The people standing behind the promotion decided that something had to be done and hired an even bigger number of pumpers. After the end of Tuesday’s session the email alerts started flying around and never stopped. Just for that evening around 26 different email touts were issued.
The compensations ranged from $5000 disclosed by ClubPennyStocks to the massive $400 000 received by Stock Publisher, Stock Freak and Penny Stock Crew. Such a flurry of activity certainly didn’t remain unnoticed and yesterday investors managed to shift 2.7 million shares when the average for NVGT stands at 26 thousand.
Unfortunately the stock couldn’t handle the pressure and after spiking at the start of the session quickly fell down closing the day at $0.34, the exact same price it had at the end of the previous session. Despite the poor performance the pumpers are still there with the latest ones joining the promotion being PennyStockLocks and StockBomb for the sum of $11 500. But will that be enough to stop the stock from sliding further down?
At the start of the year NVGT did a total reorganization of its business. They acquired the current name, hired a whole new management team and moved their headquarters to Orange County, California. At the end of March they even announced their first product – the EZfitt electrical armored cable connector. Well, just two weeks later a PR was published in which NVGT informed their shareholders that the company had once again relocated, this time to Denver, Colorado, and that they are now focusing on the hemp and cannabis industry.
Yesterday NVGT unveiled their new medical cannabis vaporizer called GLAVape but the financial reserves of the company don’t inspire much confidence in their ability to commercialize the product. At the end of the first quarter of the year NVGT had exactly:
- $2012 total current assets!!!
- $115 thousand total current liabilities
- ZERO revenues
- $5340 net loss
In addition to the almost non-existent financials last year NVGT issued millions of extremely cheap shares – 17.4 million shares issued at $0.0018 for services, 18.6 million at just $0.0002 for notes payable and another 25 million again at $0.0018 for settlement of debt. At the current market price the people holding these shares stand to gain millions.
With the pump still going on NVGT might be able to keep its current prices for the moment but the risks around the stock shouldn’t be underestimated. Do your own due diligence and use caution before committing to any trades.Yesterday the stock of Windstream Technolog (OTCBB:WSTI) continues to climb higher pushed by a hard mailer pump. The company added more than 9% to its price and closed the day t $1.85 per share.
