With a new 52-week high volume of 3.7 million shares, and a 55.56% gain, EMOT stock closed at $0.014. The obvious reasons for the surge were a press release and some newsletters talking about the company.
Creme Dellatex paid $10 thousand for this promotion of EMOT. The compensation is not at the high end, but it was enough to get some interest when combined with the timely release of a PR.
This is not the first time this combination has worked for EMOT. Back in January, the company had another announcement accompanied by a promotion, and had a similar spike. The pullback of the price was just as sudden as the surge, but didn’t go to the earlier levels.
In the January announcement, the company claimed that it had some possible candidates for a merger. After more than two months, EMOT still hasn’t released any more details and is keeping the information vague, “…agreement in principle… expect to sign letters of intent in the near future.” The PR also mentions a “new funding source”, and again – no details about the source.[BANNER]
This policy seems to have some traders displeased. The notification of late filing for the company’s annual report from Apr. 1 won’t help the situation much. These are some numbers from the latest available financial report:
- No other assets except a patent for $20,100
- $187,080 total current liabilities
- No revenue and $75,439 net loss
You decide whether this is a position suitable for an acquisition.
However, if the situation has changed significantly and EMOT manages to get some operations going, it is possible, shareholders could see some gains at some point.
Approximately 40% of yesterday’s volume was comprised of short sales. If the plot from the last surge repeats itself, the shorters may have had a profitable day.
