At market open yesterday SourcingLink.net, Inc. (PINK:SNET) had formed a very bullish pattern on its stock chart. However, the session closed with a loss and the highest trading volume for the past year. 
SNET first climbed to a new 52-week high at $0.059, which followed the strong uptrend, then it fell down again and closed the session at $0.0389. That represents a 19% loss in value from the previous close. Huge trading volume of 1.7 million shares, or eight and a half times higher than the daily average, also shows that SNET uptrend might be over.
Before market open yesterday, SNET issued its last press release. According to it, the company’s subsidiary Alliance Auto Group had made its first appearance at the Sundance Film Festival. That short announcement did not say anything that important, thus it looks more like SNET has attracted speculative traders recently.
In support of that comes the company status on the Pink Sheets market, which is that of a limited information company. Some financial data (a balance sheet and an income statement) was published on Jan. 4. According to that filing, SNET somehow manages to survive without any cash, having at the same time to cover almost $655,000 in current liabilities.
Even more disturbing for shareholders should be the fact that almost the entire amount of that debt is owed under notes payable, some of which convertible into shares of company stock.
