Will New PR Help NuGene International Inc (OTCBB:NUGN) Recover?
Last Thursday the stock of NuGene International Inc (OTCBB:NUGN) got cut nearly in half after it lost close to 40% of its share price. In a single session the ticker moved from a high of $4.41 to a close at $2.61. The unprecedented number of 2.7 million shares got traded that day.
In all of our articles covering the company we warned you to be extremely careful when approaching the stock. It is true that NUGN is a real company selling real products and generating respectable revenues but unfortunately that doesn’t make the red flags any less serious.
NUGN have been the target of a $2.28 million paid pump for the past several weeks. The promotion is carried mainly through hard mailer brochures that are being distributed to investors’ mailboxes. The party providing the money is Result Corporation, a third party shareholder of NUGN, and they intend to sell their shares thanks to the increased interest in the company created by the paid pump. The shares in question are more than likely the 11,144,640 free trading shares that have a split-adjusted price of $0.0033.
Despite the dangers around the stock the massive production budget, even if the sum may be exaggerated, and the hype created by the hard mailers helped NUGN surge by 22% on Friday to a close at $3.20. After the weekend, however, the majority of the positive momentum seems to have disappeared. Yesterday the stock finished the trading day less than 2% in the green at $3.25.
Early in the morning today a new PR was issued. In it NuGene announced the launch of a new skin care therapy Trial/Travel Pack. This pack will contain the top four skin treatment therapies of the company – Universal Cream, Universal Serum, Eye Serum, Light & Bright Gel. Will this announcement be enough to keep the stock going up though?
Even at the moment NUGN’s market cap sits at $128 million, an overly-inflated valuation that cannot be supported without the paid pump. Keep in mind that OTC Markets are aware of the pump and last week requested an official statement to be made by NUGN on the promotional activity around the stock.
