Currently this stock is trading down over 60% on the day. Now this could be a quick drop in price followed, by a recovery or is it a total collapse? I am of the opinion that today’s drop was the result of some heavy liquidation, and could very well hurt the stock long term. Though I could be wrong that is how I see today’s action.
NNRX(Nutranomics Inc.) is a health supplementation company that promotes healthy diet, exercise, and supplementation towards living a healthy life. The company has been around for a long time, but was just recent acquired and became public a few months back. The company has remained quite liquid since it went public, which shows that traders, speculators, and investors are very interested in this company.
Let’s take a look at the company’s chart, (stockcharts.com) since going public. You can click the picture to zoom in.
The chart shows a great buildup to the $1.20 range, and then a sharp drop today. A close look at the stocks level 2 doesn’t show huge sell orders, but that doesn’t mean they are not there either market makers are known to hide large orders. So, again this initial drop could mean huge price drop over the next few weeks. Those shorting the stock could make a killing, or the price could recover which would surprise me.
Also today the company released news of a Plan for Expansion, but I feel the news was lackluster at best. Big deal the company is opening a sales office in Tokyo, Japan. I mean it could lead to bigger, and better things in the coming months or years, but such a simple PR combined with this huge sell off just doesn’t feel right.
If you do so choose to trade NNRX, or are already a shareholder, I would make sure to use stop/loss orders when trading to prevent huge losses. And remember when it comes to penny stocks never invest more than you can afford to lose.
You can view the company’s website at nutranomics.com