After a whole month of excessive stock promotions, QED Connect Inc (PINK:QEDN) finally showed some extraordinary activity on the market. Namely, in the last couple of trading sessions QEDN generated volumes a couple of times higher than the daily average.
However, the increased number of traded shares was accompanied by a series of price declines of QEDN shares. The last heavy trade on Friday was marked by an 8% fall in the stock price and a volume of 170 thousand shares. The last transaction on Friday was executed at $0.16 and this share value was retained during the whole session yesterday, but on a much lower volume.
No sooner had the last promotion provoked higher market activity, than another promo letter hit the e-mail boxes of investors. This time the promotion was started by New Stock Idea, who admitted that a compensation of $15 thousand was invested in the campaign. [BANNER]
What is most disturbing in the whole picture, is the fact that only a few days have passed since the stock split and the company has already gone on a wild promotional spree. In most cases, reverse splits on the penny stock market are not welcomed by investors due to the fact that this way companies re-open their opportunities for dilution.
Before the stock split took place, QEDN was at the ultimate bottom of the chart, so everyone can make their own conclusion about the purpose of the stock split. The fact is that on one hand there was a constant promotional coverage for the company this month, and on the other hand the company’s stock has already fallen from $0.5 to $0.16 since the stock split.
