the gain continued and LKEN added the next 27.50% to its price, while its traded volume jumped over 34 million shares.Having in mind that the average volume of the stock is about 1 million shares, that’s a quite unusual move for LKEN. Obviously, something has provoked traders and they started to buy shares heavily.
The only reasonable explanation here turns out to be the latest news about Luke Entertainment. Yesterday, the company announced that it has acquired 100% of the shares of AccuBrite, Inc, a private company that manufactures and distributes a line of high quality consumer focused inkjet refill kits. Most probably, investors have learned the news a bit earlier and the high trade has begun.[BANNER]
At the same time, Luke was strongly discussed on investroshub.com message board and some rumors for dilution appeared. However, at this point there’s no one to confirm them.
On Wednesday, the OTC Markets website released another announcement about the company. According to it, by Nov 17 the total outstanding shares of Luke’s common stock was 3,230,000,000. The list of the shareholders was included in the announcement, which reported also that none of the company’s directors and management team was under investigation “for any violation of federal or states securities laws”.
Luke Entertainment, Inc. manufactures and distributes a line of 25 high quality consumer focused inkjet refill kits. Leonard M. Greene purchased the controlling shares of Luke Entertainment, Inc. on Sept 15, and the company changed its name from Luke Entertainment, Inc. to Greene Concepts, Incorporated on November 4, 2010. Luke used to be in the low trade zone for a long time, though its stock price has significantly increased due to the recently published news.
The annual report of the company shows that by end-July Luke had more assets than liabilities, though it had long-term debt of over $960 thousand. The company has incurred a net loss and expenses and it doesn’t have enough cash on hand to cover them. According to its financial report, Luke has obtained a loan form its new director, Leonard Greene, to support its operations.
Now the only thing the pink sheets company may hope for is that its new acquisition will be able to ensure its business.
