Daily OTC Premarket Digest – 24.05.2013
We are about to see off another emotional week of intensive trading which kept penny stock investors galvanized while bulls and bears were fighting for dominion over the market . Thankfully market participants will have plenty of time to replenish their strength because trading on the US stock exchanges will resume on Tuesday after Memorial Day.
So let’s take a look at the situation on the OTC markets before the last opening bell for the week.
Technologies Scan Corp. (TENP) – TENP is one of the few promotions that has been planned for Friday. However, this is not a fresh cpromotion as the company had already been promoted on Wednesday 22nd in a campaign that was organizes by several stock promoters, who had been compensated $35,000 by RJLQ Investments S.A.
On that day TENP closed at $0.085 or 57% lower than the previous close on a volume of 1.2 million shares. After such a dramatic crash which had obviously burnt many unprepared investors, it is very unlikely that the new promotion will produce any significant effect on the market.
Let alone the fact that this time the promotion is much more modest in terms of compensation. The promoters which are touting the stock today have disclosed a compensation of $5,000 by the same third party.
The promotional newsletters are pointing to the negotiation between TENP and Social Geek Media for the outright rights acquisition of TENP’s Proteina21 weight loss product which was announced today in a press release wired via Comtex.
In a letter of intent concerning the license agreement between the two companies, TENP had agreed to pay Social Geek a total of 200 million shares regarding the exclusive license for the North East region. TENP had also agreed to provide $100,000 at the closing of the license agreement.
However, the last quarterly report of the company shows that it had no cash at hand, which naturally gives rise to the question how TENP will procure the financing. Should the company resort to sale of common stock in order to fulfill its obligations in the license agreement, this will undermine the positions of current shareholders.
TENP is a company traded on the OTCQB market which is providing marketing services with a focus on online sales and marketing of consumer products and services. Its stock was traded for the first time on the OTC markets this week which deprives investors from the opportunity to conduct a proper historical analysis of the stock’s performance.
Nuvilex, Inc. (NVLX) – NVLX is another important promotion which will unfold today. The company has been touted by three promoters since the last closing bell, who focus the campaign on the following key points:
- Apart from its other biological products, NVLX is also in the development and the study of the use of medical marijuana, which has been one of the sizzling areas of the stock market for some time now.
- NVLX has been in an uptrend since February and has hit a 52-week high at $0.22 in mid-May.
- The promoters also hint that there are rumors about big news coming from the company on Friday.
However, NVLX has been regularly promoted since April, so it is not certain if the new campaigns will have enough power to influence the stock. Furthermore, the company needs to show some real potential with its new product projects in order to justify a market cap above its current market valuation of $65 million.
According to the last financial report concerning the quarter ended January 31, 2013, the company held:
- An accumulated deficit of more than $41 million.
- A working capital deficit of $2.2 million; the gap is even deeper if we consider the value of real assets.
And with only $33 thousand in cash and cash equivalents the company will need a significant financial injection in order to realize any of its new product projects.
These facts may suggest that NVLX is in for a good deal of correction especially once the promotional campaign of the company runs out of power.
NVLX is a company traded on the OTCQB market which operates in the “biotechnology arena” and aims to create cancer and other cell related solutions to treat important human diseases such as pancreatic cancer. Yesterday NVLX stock closed the trading session at $0.142 per share on a volume of 3.5 million shares after reaching an intraday high at $0.159.
Plandai Biotechnology, Inc. (PLPL) – PLPL is also in the list of promoted companies for Friday. Truth be told PLPL is a company that has been constantly in the spotlight of promotions for the last couple of months.
Contrary to the way most promotions end up, which is with a big crash, PLPL has not been an object of a significant dump during this period. In fact since the beginning of April the value of PLPL stock has skyrocketed from around $0.06 per share to the recent 52-week high at $0.62 per share.
For some time now PLPL stock has been consolidating within a range between $0.45 and $0.55. Yesterday the stock finished 8% lower than the previous close at $0.46 per share on a volume higher than the 3-month average.
PLPL is a company traded on the OTCQB market which has a market cap of $60 million. It is a biotechnology firm which makes extracts from live plant material that deliver a high level of bioavailability in the market.