Yesterday`s session turned out to be very successful for Abtech Holdings,Inc(OTC:ABHD) stock. The volume of traded shares was 320,000, which is times more than the average for 2010.
The high volume was also accompanied by a sharp increase in the price as the session opened at $0.42 per share and closed at $0.61. Historically, Abtech stock is no stranger to such sharp increases and declines, yet there would usually be an objective reason for such intense trading activity on the market.
Until last year Abtech was a pre-exploration stage company focused on the acquisition and development of mineral properties and bearing the name Laural Resources, Inc. Since June 14th 2010 when the company engaged in a merger with its wholly-owned subsidiary Abtech Holdings, Inc. it has changed its name to the one of its subsidiary. Accordingly, the main line of business was changed to the development of lean technology products and services, specifically in the water clean-up sector. This shift to another sector did have a positive effect on the stock price, but it was short-lived. Booming activity on the market followed and in just ten days the share price skyrocketed from $1.00 per share to $2.77. After the initial excitement though, investor interest and confidence quickly disappeared
and a steady decline began, bringing the stock price to its present state.
and a steady decline began, bringing the stock price to its present state.It is important to mention that there was no immediate reason for yesterday`s sudden interest in Abtech shares. There were no announcements from the company, no stock promotions or released financial reports, only rumours and speculations on the Internet. The latter are most likely to have caused that interest and a good possibility exists that the increase in the stock price would not last long.[BANNER]
The last 10-Q financial report was also not much of a reason for optimism. According to it, the company has reported the following for 2010:
- a net loss of $83 thousand
- total current liabilities of $180 thousand
- no current assets
Having this data in mind, it is very clear why investors were reluctant to purchase Abtech stock in the last six months. Additional capital is needed for the company to service its debt and to develop clean technology products and services. Without it, Abtech`s future looks very uncertain not only from investors point of view.
