Will Supernova Energy Inc (OTCMKTS:SPRN) Hold Its Gains?
tags: SPRN
For most of last Friday’s trading it seemed that the stock of Supernova Energy Inc (OTCMKTS:SPRN) would continue its positive performance and that it would climb even higher up the chart. A little over an hour before the closing bell, though, the ticker stumbled and fell down towards the bottom to an intraday low of $0.046. Thanks to a last minute jump SPRN closed the day flat $0.515 per share but will they manage to do so again when the market reopens today?
Well, without having absolutely anything substantial supporting the stock holding on to the current price ranges might prove to be extremely difficult. Not only is the last PR issued by SPRN over 7 months old but the company has also decided to skip on filing its financial reports. So far both the annual report for 2015 and the quarterly report for the first three months of 2016 are nowhere to be found. As a result the OTCMarkets page of the company was marked with the OTC Pink Limited Information sign.
The last information we have about SPRN‘s financials comes from the quarterly report covering the period ended September 30, 2015. Saying that back then the company was in a grim state would be an understatement:
• $1,734 cash
• $3,742 total current assets
• $728 thousand total current liabilities
• $1,209 revenues
• $429 thousand net loss
With no new PRs and two missing financial reports what could explain SPRN‘s sudden jump out of obscurity and the two positive sessions that took place last Wednesday and Thursday? The answer is quite simple – a paid pump. For a $25 thousand compensation the affiliates of Stellar Media Group distributed a round of alert emails in an attempt to generate as much artificial hype as possible.
With the effects of the promotion starting to fade away SPRN might soon slide back down to its pre-pump prices. Those who jumped into the stock as a result of the pump emails risk finding themselves stuck into a thinly traded pennystock.
