Yesterday Automotive Resource Network Holdings, Inc. (PINK:ARNH) had a terrible session. A very weak promotion had the stock lose more than half of its price.
In all fairness, the first ten minutes or so, ARNH traded up, but the crash after more than made up for that. In the end ARNH closed down 56% at $0.011 on nearly 15 million shares.[BANNER]
There are a number of reasons the promotion resulted in a crash. To begin with, the compensation was just $8 thousand.
The promoter didn’t really have much to work with either. ARNH hasn’t turned a profit, has a heavily leveraged balance sheet and there is no guarantee it can turn things around.
The announcements made by the company share a common feature which isn’t particularly convincing when one’s looking at a pink sheets company; this feature being that they are all about plans and not so much about delivering something solid.
