Social Media Venture (PINK:SMVI) has doubled in value, which would have sounded fairly encouraging to investors, had it not been its .0001 stock status.
Indeed, SMVI stock scored a 100% increase during yesterday’s session. Yet, it only gained three pips, closing at $0.0006 per share. The surge in price was accompanied by a spike in the volume too. By the end of the session, more than 446 million shares of SMVI stock changed hands, which is both considerably higher than the previous day and six times as big as the daily average trading volume.
How SMVI managed to score double, however, is still far from clear. On the one hand, the company has not issued any news for two weeks now. On the other hand, SMVI stock is by no means among the most heavily promoted ones.
Although the surge is fairly insignificant, it can actually do SMVI stockholders a favour because any further negative movement might lead to a reverse stock split and subsequent dilution.
Last April, SMVI published a quarterly report covering the period ended Dec. 31, 2010. According to the unaudited balance sheet, the company had:
- $10K in cash;
- negative net worth of $340K;
- $48K in sales revenues and a net loss of $214 thousand.
Until anything fresh comes out, SMVI is unlikely to become the next five-ten bagger.
