For some reason, Sunergy Inc (PINK:SNEY) has reached ground zero on the OTC market due to its ‘Caveat Emptor’ status. Indeed, SNEY may not be reporting with the SEC, but it has not prevented it from finding a way to churn out corporate updates every now and then. The company has issued as many as three press releases for this month alone.
On May 3, SNEY promised to finally provide a full-on 10-K 2009 annual report. As a result, its stock went up 14% capitalizing on the good news. As expected, however, the company failed to fulfil its promise. Now, it has lied to its supporters for the gazillionth time. Which is why new updates no longer give SNEY a boost. Yesterday was no exception.
Obviously, market players have taken a fairly indifferent approach to SNEY stock. In spite of the fact that the company recently managed to raise $700K via a private placement and short-term debt, its stock went down 14.5% during yesterday’s market session. Thus, it closed at $0.02 per share on a volume of 11.1 million, slightly below the daily average trading volume.
Last month, SNEY announced it had taken a CPA on board in accordance with its strategy to go for a much more transparent financial policy. Unfortunately, this move does not appear to have made a difference yet. Maybe, Mr. Shelley has taken his time to do the work diligently. If so, he had better hurry up because getting rid of the ‘skull and crossbones’ symbol is considered a top priority.
Quite surprisingly, SNEY has hardly been among promoters’ biggest favourites lately. After all, SNEY’s reporting status is as dark as it might get, which makes its stock just as volatile and unpredictable.
In a nutshell, adopting a whole new course toward a much higher level of financial transparency might be the sparkle that will set SNEY stock on fire.
