Xinhua China Ltd. (PINK:XHUA) has been showing very high volatility lately. This volatility has intensified since XHUA breached the psychological barrier of $0.001.
While XHUA has been twitching back and forth like a freshly caught tuna on a boat deck, other parties have taken to the job of starting a promotional campaign on the company. On Saturday evening, a promoter called OTC Reporter issued a trade alert on the company.
As it becomes visible from the newsletter’s disclaimer, the promoter had received $5,000 for the promotion. OTC Reporter didn’t reveal the name of the paying party, but still it became clear that the money came from a non-affiliate shareholder of XHUA.
On Friday, for some unknown reason, XHUA stock was traded much more intensively than usual. At the end of the session, 2.7 million shares had changed hands, while the stock value had risen to $0.0015.[BANNER]
At the end of this trade XHUA had finished above the 50-MA, but unfortunately due to the recent high volatility it is not very clear whether the company will manage to maintain this stock value.
The lack of announcements and recent reports additionally hinders the investment strategy of interested traders. The close proximity of the stock to the triple zeros area makes the trade of XHUIA stock even more speculative.
