Yesterday was the third in row trading session for KAT Exploration, Inc. (PINK:KATX) stock with positive results for investors.
Speculators rushed KATX stock immediately, in a hurry to bank gains and maybe in response to he lack of reliable information about the company.
Last Thursday, as KATX announced the appointment of a professional with geological background to the position Senior Vice President of Capital Projects, KATX stock price remained almost unchanged. On the following day, KATX stock even pulled back additional 1.55% and had weak trading volume.
It seems that investors’ reaction to that news was the unwillingness to vote “for” a price appreciation.
This Monday, some professional stock traders, being in speculative mood, opened the door for the KATX stock stir. On that day, 38.12% of the total volume traded belonged to shorters. Following the 55.29% shorted volume on Tuesday, yesterday was the peak of those professionals’ trading activity. The shorted volume reached 66.29% of the total volume traded.
Yesterday, KATX stock closed the market at $0.17 per share, adding 11.84% to its value. More than 1.9M shares changed hands, which was over four times the volume traded as KATX announced the above mentioned important fact.
As the chart here shows, KATX stock looks more sensitive to stock alerts and speculative trades than to the company’s news. One of the reasons is maybe the fact that all relevant developments of the company are only released in the press. KATX is De-Registered from the SEC since last summer.
Investors usually rely on the SEC filings to make their own due diligence on a company. Unfortunately, this is not possible for KATX.
Though, investors still have a reason to be happy. All the mergers, share issuances and other deals announced by KATX over the last two months are related to Bella Viaggio, Inc. (OTC:BVIG), which is a company without any material revenues since its inception, but which at least makes regular SEC filings.
According to them, BVIG’s activities have been limited to raising cash through the sale of securities and BVIG is the actual owner of the famous “Handcamp” gold property.
Furthermore, Mr. Kenneth Stead, the CEO of KATX, is also the principal shareholder, the CEO, the President and one of the two members of BVIG ‘s Board of Directors.[BANNER]
Referring to the above “Handcamp” property, BVIG’s SEC filing states: “The price paid by the Company and the other terms of the Agreement providing for the acquisition of the Property was determined solely by Mr. Stead based upon his belief of the fair value of the Property.
Because Mr. Stead is acting and negotiating on behalf of both entities, you must rely on his judgment of the value of the Property as well as on his belief of the fair value of the Purchase Shares. As a result, there can be no assurance that the Acquisition was fair to either the Company or the Seller and/or their respective shareholders.”
To conclude, it seems that drilling holes and making press releases is not enough to convince investors to make the company’s stock become sensitive to news.
