On Friday, following the huge investor enthusiasm from the previous day, New Generation Biofuels Holdings, Inc. (NASDAQ:NGBF) stock surged by 3.73% and closed at $0.25.
Even the announced by the company cash conserving measures were not able to convince investors and shorters that NGBF stock may close the week above the psychological limit of $0.28 per share.
The second half of August was full of events and extremes for NGBF.
Two weeks ago, the company succeeded to raise approximately $915,000 in net proceeds in a registered direct offering of securities to a small number of institutional investors. As NGBF stated, the amount will be sufficient to cover the company’s business through at least this October.
It seems that investors reacted negatively on the news, acknowledging NGBF’s urgent need for cash. One day after NGBF made the SEC filing related to the transaction, the share price pulled almost 11% back and hit a new 52-week low.
Last Monday, NGBF presented its financials for the six months of the year. Despite the reported decrease of the company’s net loss and the improved net loss per share from $(0.56) for the six months ended last June to $(0.18) at the end of this June, the uncertainty towards NGBF fair price rose further.
NGBF reported also a decrease in the total revenues, due to minimal sales during the first quarter of 2010 and to no sales during the second quarter of 2010.
The noncompliance with the NASDAQ requirement of $1.00 bid price and the accumulated deficit of $56.6 million not only made the price of NGBF shares decline, but even took their breath away on Wednesday. Then, NGBF closed without a price change on a weak volume and probably in expectation of some positive news from the company.[BANNER]
Since there were no such news, on Thursday some enthusiastic and progressively thinking shorters took the initiative to revitalize NGBF. With 57% from the total volume traded being due to speculative interest, NGBF was finally rushed. On a volume of 1.6 million shares, not seen by the company for the last three years, NGBF took a deep breath and surged 24.87% up.
With or without corrections on the company’s news from Friday about the last NGBF cash conserving measures, consisting of lease restructuring and other cost cutting actions, the shares’ price and demand were thus already corrected one day earlier and on no news.
During the last session, thanks to the advanced renewable stock speculative technology, NGBF shares were traded again in millions, but this time with recessive speculative interest.
