The brand-new promotion in support of Next 1 Interactive, Inc. (OTC:NXOI) describes NXOI as a ‘super sub-penny worthy of the watchlist’. Is that really the case, though?
Yesterday, NXOI shot up 25% to close at $0.001 per share on a volume of 51.83 million, which is twice as much as the company’s average trading volume for the last 30 days. Thus, NXOI took a breath of fresh air as it jumped from the six-month low it had reached the day before, which, as a matter of fact, could be predicted as seen on the chart.
Prior to yesterday’s session, the RSI had shrunk so much that NXOI was on the verge of being classified as ‘oversold’. Judging from the chart data, the RSI went below the 30 level twice for the last six months, both times followed by strong uptrends. In this respect, NXOI’s yesterday surge might start a new short-lived uptrend, which is what the latest pump effort worth $12,500 is all about.
Even if the paid advertising campaign gives NXOI a boost in today’s session, its impact will most likely be short-lasting. A quick glance at the company’s financials for the last four quarters on record, i.e from Feb. 28 2011 to Nov. 30 2011, show that it is sailing in troubled waters. With an average current ratio of 0.06, NXOI is bound to face a liquidity crisis sooner rather than later. While NXOI’s quarterly revenues average at approx. $430 thousand, they are way insufficient to cover administrative costs of 3.125 million per quarter. Last but not least, NXOI’s aggregate net loss for the trailing four quarters amounts to a staggering $21 million.
The figures mentioned above speak for themselves. The company’s business is going nowhere. Nevertheless, NXOI could always take investors by surprise in due course.
