The Aftermath of New Energy Technologies, Inc. (OTCMKTS:NENE)’s Correction
The stock of New Energy Technologies, Inc. (OTCMKTS:NENE) had a very impressive run since the end of last month in the course of which it gained around 61% in value, registering only 2 trade sessions in the red.
As we mentioned in our previous article covering NENE‘s climb it was the result of a press release from October 29 with which the company announced its plans to unveil their SolarWindowTM working prototype some time in the upcoming calendar quarter.
Since then there was no PR from the company, apart from an announcement of an 8-K filing with the SEC that informed investors of the resignation of Mr. Jatinder S. Bhogal as Director of NENE on November 1. The fact that the company stock continued to ascend the charts without the help of optimistic press releases was surprising, but the expected correction came.
On Friday NENE experienced a blow that obliterated the gains that the ticker acquired over the course of more than a week. The culprit – a massive dumping fiasco in the end of the session which resulted in a daily volume that was 8 times the stock’s average.
The huge dumping of stock immediately pushed the price down and NENE closed 29% down in the last session before the weekend. After it had reached levels of above $3 per share the stock quickly went to close at $2.35 with a massive 892 thousand shares that switched hands, generating $2.6 million in dollar volume.
After the crash, NENE decided that it was time to give some information on the current development and issued a press release that informed investors they were going to present at IDTechEx’s fifth annual Energy Harvesting and Storage USA 2013 conference.
The PR came right before market open and the stock began to climb immediately, after the first bell. In the end of the day NENE managed to regain part of Friday’s loss and closed 17.87% up, priced at $2.77. The volume was above the average again with 522 thousand traded shares that generated $1.3 million in trade value.
Overall, as mentioned in our previous article the company is in very decent financial shape considering it is still in development stage and isn’t generating revenue, however, the heights that it has reached may proove unstable and this is the exact reason for which we would advise you to do your due diligence and weigh out the risks. After all it’s not one of the cheapest stocks in the OTC Markets.
Another company that is in decent financial state at the moment is Quadrant 4 Systems Corp. (OTCMKTS:QFOR), who rarely get much attention, but exploded yesterday with a high amount of traded stock and a decent gain of 22.73% in price. ChromaDex Corp. (OTCMKTS:CDXC) wasn’t so fortunate and the ticker lost some 17% in value after the steady climb it recorded since the beginning of last month.
