Yesterday, China Electric Motor’s stock lost another 4.08% of its value on growing trading volume and closed at $4.93 as over 16,500 shares were traded. The volume is not impressive, as it is far below the average, but it looks like the promoters are no longer able to sustain the initial investor interest for the stock.
The next promotional disclosure was made yesterday, to remind investors that since the beginning of March the stock is advertised by a famous investor relations company. The profound marketing events are being paid by the company itself with a fee of $30,000 for twelve months of services, including the preparation of a research report, investor conferences, as well as digital and print distribution of CELM related materials. Further, 2,000 restricted shares of common stock have been delivered to the promoter.
There is no reason to question China Electric Motor’s and its promoters’ willingness to believe in the excellent prospects in front of the company, expressed also in the improved revenue and income second quarter guidance in yesterday’s press release. Though, it seems that the investor side of the market is starting to have some doubts. In June, another promoting attempt provided only for a one-day jump, as at that time some substantial changes in the company’s senior management took place one after the other.
Hopefully, the annual shareholder meeting on Monday, whereby among the other things several of the recently appointed management members will stand for election to serve in the company’s Board of Directors, will bring in some stability for CELM stock. Because the estimates for higher revenues and income may not sound plausible, as in the previous quarter both parameters had actually declined.
