A month ago it was Kunekt Corp.(OTC:KNKT) flying high, breaking records. This week, the flight is over, the excitement is over and the British Columbia Securities Commission has stepped in while the promoters stepped out. No wonder why the stock could not hold to the pressure and drops down day after day. The important question, however, is – what is the bottom point of this ride down the hill? 
One halt trade order on Feb. 28th, one on March 3rd., both with an interesting reason. In fact, it was the last day of February that the price hit $2.9 per share. In terms, it has been following a pattern of a steady decline ever since. Basically, whatever purpose this sudden burst in the stock served, it was obviously already achieved. The stock price at the end of February is almost 10 times what it used to be last December. Quite a good gain for the ones who waited for the hype to start.
Yet, the ones who bought Kunekt shares above $1 are probably very unhappy with its recent performance. Yesterday’s session alone opened at $1.15 and closed at $0.87 and there is hardly any sign that the negative pattern would reverse any time soon. On the contrary, the latest to come out about the company is an 8-K. It would cover the details of a share exchange agreement with Asian parties. It is a long document where most pages include the following: [BANNER]
- THIS AGREEMENT IS SUBJECT TO REGULATORY APPROVAL INCLUDING A TEMPORARY CEASE TRADE ORDER VARIATION ORDER BY THE BC SECURITIES COMMISSION.
Now, one practical outcome of the above is that Kunekt would eventually have the ability to see products of the Asian counter-parties under its own brand. Whether it will all go as planned, is another matter entirely. After all, there were vivid discussions about the company’s stock going above $5 in March, which did not exactly happen. By the same token, what follows next for Kunekt and its shareholders is not an easy question to answer, especially when that level of uncertainty and negative stock performance exists.
