The stock price of Scientigo made a spectacular 380% yesterday to close at $0.120 and the 25 times higher than the average trading volume let the share get even more oversold. 38% pf that volume was shorted.
No news have been released by the company and it has not disclosed any material information over the last three years. Though, some members of the online investor community were watchful these days. A forum post appeared on Wednesday evening and it must have provided for the action yesterday.
It seems that Generation Zero Group Inc. (OTC:GNZR) has made an agreement to purchase Find.com URL Holdings LLC, in which Scientigo has a 40% stake. According to a press release, most of the purchase price will go to Scientigo, Inc. Considering that Find.com’s estimated worth is about $12,264 currently, it is understandable that the acquisition will be paid mostly with notes and shares.
As the common investor is not aware of Scientigo’s current business plans and if there are any at all, one can also judge about the potential value of what has been acquired from some Generation Zero’s filings.
The company was founded in 2006 and had initially the idea to mine oil and gas properties. Though, as it had only expenses and losses from that, decided recently to “broaden the focus” towards the Internet businesses. CEO Mathew Krieg (who is also the CEO of URL Holdings) is realistic though and he is not hoping to be the next Google. As clearly mentioned in the latest financial report of GNZR, the main objective of the future expansion in the Internet business is to “attempt to increase the value of the Company’s common stock”.
It seems like buying Scientigo’s stake in Find.com was not exactly the best pick to achieve this. The plans were announced already in May, but got no reaction. The short-term price increase afterwards is also more likely to have been speculative, as GNZR shares even dropped down on Monday when the confirming 8-k filing was done.
The market obviously has not seen a lot of value in the assets newly sold/acquired and it seems as Scientigo’s stock price is the only one that could cash up some profits.
