Smart Holdings Inc (PINK:SMHS) is still actively traded even though the price has already tumbled down into the unknown. The recent increase in trading activity and price behavior followed the standard promotional pattern which HotStocked has raised an issue about.
Now that the traders are getting out or shorting the stock, promoters are trying to convince of an impending bounce on short squeeze. News was also released by the company, as they work with the promoters for a maximum effect.[BANNER]
In a press release Smart Holdings stated its revenue model shows that the annual sales could possibly reach $30 million in 2011. However, this is not confirmed by any facts currently available to investors. News came out at the same time as most of the trading recommendations on the stock, which looks very suspicious.
Furthermore, the model, that forecasts $2.5 million in net profit by the end of 2011, has nothing to do with the current share price. Until the company publishes at least one quarterly report, mistrust is likely to be the key factor driving the stock.
In the mean time, price is forming a downtrend. On Wednesday, only 25% of the trading volume came from short sellers, which demonstrates that it’s way too soon to think about short squeeze. Any appreciation will be cause by genuine buying.
