Nutech Energy Resources Inc. (OTCMKTS:NERG) Explodes On Announcement
Nutech Energy Resources Inc. (OTCMKTS:NERG) added 80.00% to its market value yesterday, after announcing that it has engaged a law firm in order to uplist to the NASDAQ.
NERG has been quite active on the PR front these last two days, and it seems like investors are inclined to believe its talk of “strong results that have exceeded expectations” and NASDAQ uplisting. Which is simply hilarious, since just a couple of months ago, the company filed a quarterly report that looked like this:
- NO ASSETS
- NO REVENUES
- Total Current Liabilities – $4.9 MILLION
- Quarterly Net loss for Q2 2015 – $128 thousand
Do those really look like the financials of a company that’s ready to up-list to the NASDAQ? The answer to that question should be obvious.
While on the subject, it should be mentioned that NERG did announce its intention to file a financial report after today’s trading session. Both long-term investors and opportunistic traders wishing to make money out of this particular ticker should be on the look out for that one, as its content will surely dictate the fate of the ticker.
Because if the numbers in it look as unsatisfactory as everything that NERG has done to date, the ticker will almost certainly plunge to the bottom of the chars. On the other hand, if the report does support NERG‘s boastful claims the ticker will most probably be headed way above one penny.
This puts anyone who commits to NERG stock now in a very precarious situation, where they either win big or take horrendous losses. It is up to investors to decide whether the risk is worth the potential rewards. Our advice in this case is to focus on risk management and think very carefully about how likely is it that those rewards will come at all, in light of NERG‘s history of mediocrity.
