Last Friday, the managers of Independence Energy Corp. (OTC:IDNGD) performed a 5-for-1 forward stock split. While CEO Gregory C. Rotelli & Co. might have aimed to improve the marketability of the stock by making it 80% cheaper, they need not have made the effort as it was hardly worth.
So, what happened following the split, apart from the fact that the company’s dilution prospects broadened considerably? Ironically enough, instead of improved marketability, the split actually left all IDNGD stockholders in cold sweat. Why?
A look at the charts says it all. IDNGD has just recorded one of its worst trading weeks. First, it plummeted 56% on Monday. If this were not enough, IDNGD stock consecutively went down 54% and 43% on Wednesday and Thursday, respectively. Today, things are going from bad to worse. 30 minutes into the current session, the company’s stock has shrunk by an additional 20%.
The truth is as naked as a jaybird – IDNGD has headed straight down to the rock-bottom and no force whatsoever seems capable of bringing this downtrend to a halt. So, unless a big announcement comes up, all traders holding IDNGD shares will continue to incur losses.
While the company did issue a press release earlier today, it could not have been taken less seriously. Not that the arrival of a contracted drilling rig at a well that is ‘shown to be productive’ is of no one’s interest, but the company still has a long way to go before delighting investors with what they would really like to know – is this well an oil-rich property or is it just another financial black hole?
Until IDNGD comes up with an outright response to the question mentioned above, investors would be better off giving this stock a miss for the time being.
