Plandai Biotechnology, Inc. (OTC:PLPL) closed yesterday right between its 50-day and 200-day moving average on a low trading volume. Traders seem to be losing interest, yet the stock has been promoted again and the company has come up with another press release. 
PLPL closed the market yesterday with a 8.33% decline in the share price from the previous close at $0.33. Trading volume was 58,045 traded shares, which is much lower than the average daily volume of 92,649 for the past three months.
PLPL has been trading in a channel this month, crossing a number of times the 50-day MA and giving controversial trading signal. Most probably, that has been caused not by any fundamental events concerning the company but by the promotional impact of numerous newsletters covering the stock recently.
Today’s session will be affected by the last promo e-mail on PLPL sent last night. Although the paying party remains undisclosed so far, the promoter working for it discloses a compensation of $10,000. In line with the starting new campaign, PLPL has also published a press release yesterday afternoon.
In it, the company announced that Dr. Ming Hu, Professor of Pharmaceutics at the University of Houston, has been added to the company’s scientific board. Even if the news is good, that should not mean that the company’s future is secured.
At the end of December last year, PLPL had insubstantial cash reserves for a biotechnology company of only $1,7 million. The revenues of $14,000 for the quarter were not sufficient to cover the expenses, thus the company should rely on outside financing to keep its operations running, which in term means dilution risks for the shareholders.
