KIWB-logo.gifAfter the break of the resistance on Friday, imagine what can happen with Inc.(OTC:KIWB) this Monday. Actually, despite the opinion shared in most financial forums, there is more than one scenario. After all, technical analysis, being a useful tool, does not always work for penny stock enterprises. KIWB-09.05.11.png

Otherwise, it has been a great run so far, reaching a peak last Friday. Since the beginning of the year, Kiwibox has been breaking away from the sub-penny levels, climbing slowly and steadily. Yet, it has been more than a year since this stock has last experienced the trading Frenzy of Friday. More than 18 million shares changed hands, making up for a 28% increase in the price, the session closing at $0.042 per share. The right moment for people to start dreaming of $0.1 seems coming.

Well, while possible, this is also an uncertain perspective. First and foremost, the great run on Friday is by no means a guarantee that anything would happen this week at all. After all, the hype on Friday has no apparent catalyst that could have fueled such a massive trading volume to occur. The previous session (Thursday) was a typical one, with a small dollar volume and little change in the stock price. So, the most important question that should be answered is – what sparkled the trading activity on Friday? Without this answer, technical analysis and all other forms of predicting the next move of KIWB would have very little solid ground on all the evidences presented. There was an alert about this company, but it is not very probable that this was the cause for the hype.

Let alone, this is not the most financially stable enterprise on the penny stock market. The last 10-K statement covering 2010 indicates the following as of Dec. 31st: [BANNER]

  •  total current assets of $34k, $377 in cash;
  •  total current liabilities of $6.1 million;
  •  total net sales $2k;
  •  net loss of $3.9 million;

There are other figures in it, not really positive as well. In terms, this makes KIWB a risky play. The truth of the matter is that more and more people would be looking at it in the next few days. Whether they would act or keep away from Kiwibox, is another matter entirely. The one thing that could actually be very beneficial is if the company announces some development that could serve as an actual catalyst for Kiwibox to grow. The best one, of course, would be an SEC filing showing an increase in the revenues. Without it, all these hypes and one-day bullish moves could only appeal to the speculative investors, but hardly to long-term investors that could be the backbone supporting the company’s stock.