Penny Stocks on the Move on Aug 21: MJNA, ETEK, VUZI, ITEN
Earlier today, results for the Existing Home Sales came out showing an increase of 7% on a monthly basis. Yet, despite the good fundamental news, investors have decided to keep a defensive stance until the shorthand report from the FOMC meeting comes out.
Thus, at the moment the US stock markets are tumbling down, registering their longest sequence of declines since the start of the year. At the moment, the OTC Markets are experiencing the heaviest selling pressure as compared with the rest US stock indexes. Currently, the OTCM ADR index is down 0.91% at 1,427.71.
On this background, some of the market movers on the OTC Markets are up, while others are falling down significantly:
Medical Marijuana, Inc. (MJNA) – MJNA is currently struggling with a selling pressure which is produced by both the general market mood at the moment and a publication which came out today on Reuters raising a red flag for medical marijuana investments.
Yesterday afternoon, a publication titled “US Regulators Warn Marijuana Scams Growing like Weeds” was published on Reuters, which caused a major wave of concern among medical marijuana investors. US regulators explicitly warned that “Investors in marijuana-related stocks may see their profits go up in smoke”.
The regulators added that one medical marijuana small-cap company was sporting a CEO who had spent nine years in prison for drug dealing activity, while another company’s former CEO had been recently indicted for taking part in a mortgage-based Ponzi scheme.
With this warning at hand, today investors are getting rid of their holdings in MJNA sending the stock value down the slope. Currently shares of MJNA are trading 6% lower at $0.138 per share on a lower than average volume.
On Monday, MJNA announced that HempMedsPX would be attending and exhibiting at the Michigan Medical Marijuana Conference. However, the same day the value of MJNA stock declined 1% to $0.16 per share on a higher than average volume of 7.3 million.
Eco-Tek Group, Inc. (ETEK) – Today ETEK may have caused several heart attacks among its shareholders as the company stock has plummeted since the start of the trading session.
Currently, shares of ETEK stock are trading 43% lower at $0.068 per share on a higher than average volume of 7.2 million. The trade value generated by ETEK so far is $700 thousand.
ETEK got trapped in this red colored scenario mostly due to the speculative promotion on the company. The market awareness campaign on ETEK was initiated today and had cost $35,000, which in general is a major conflict of interest posing high risks for common stock traders.
Thus, despite the pompous words of ETEK’s promoters and the announced earlier $50,000 order shipped to Peru, the value of ETEK shares crushed down within the first couple of minutes after the opening bell.
Vuzix Corp (VUZI) – Regardless of yesterday’s bearish session of VUZI, today the stock is trading above the previous close in contrast to the declining stock markets. Yesterday, VZUI stock value fell 4% to $2.16 per share on a higher than average volume of 270 thousand, as investors were taking back profits from VUZI’s bullish spike on Monday.
However, at the moment VUZI continues its upward direction. At the moment shares of VUZI stock are trading 9% higher at $2.35 per share on a higher than average volume of $183 thousand. The stock continues to generate buying pressure, despite the fact that it has not received any fundamental support since Aug 13, when VUZI announced that a recently closed financing had strengthened the company’s balance sheet.
CodeSmart Holdings, Inc. (ITEN) – ITEN is struggling with a lot of selling pressure today. Currently shares of ITEN commons stock are trading 12% lower at $2.22 per share. The 90 trades which have been generated by ITEN since the start of the trading session are estimated at $327 thousand which was enough for ITEN to claim a place among the most actively traded penny stocks on the OTC Markets today.
On the previous two trading sessions, ITEN registered an increase in its share price, following the filing of the company’s financial report for the second quarter 2013. Yesterday, the company also issued a press release saying that its subsidiary, the Codesmart Group Inc., would provide ICD-10 training for Freedom Medical Billing in Nutley, NJ.
However, this week’s fundamental support produced only small positive effect on the stock, so at present ITEN faces serious challenge in containing its share value due to the strong bearish mood on the US stock markets.