The penny stock that shocked investors on every exchange last week, Sunpeaks Ventures, Inc. (OTCBB: SNPK.OB) has been coming out with every excuse in the book for why it hasn’t performed as well as it appeared. SNPK announced on Friday that a special outside counsel is looking into the high volume of trading and price increase in SNPK, one of the OTC stocks which trades on the OTC Bulletin Board exchange.
The investigation should not be hard to start as shares in SNPK had never traded prior to March 8th. The stock traded over $60 million in less than four hours. The investigation into the price increase is somewhat of a waste of time since there wasn’t an increase of more than 50%.
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Penny stock traders salivated to get their hands on the stock when they saw SNPK lead all the stocks traded on the OTC that day. However, once the shares got into the hands individual investors, volume simultaneously dropped dramatically.
On Friday when the share could not move up or down more than 2 cents, volume increased just after noon and the trades mirrored the first day SNPK traded except in the opposite direction. Less than 6 million shares had traded as of mid-day Friday, yet SNPK closed down considerably with volume of over 30 million shares traded.
Having issued several statements of having no affiliation with the internet newsletters being circulated about the future price of the stock, SNPK is now being investigated which could mean that those investors holding shares will never get a chance to liquidate them. Truly, SNPK has painted a nasty image of what penny stocks can be like.
On another note involving Sunpeaks Ventures, The NBA’s Charlotte Bobcats have been absolutely humiliating this season. Each and every game has just been one bad joke after another. With a record of 4 wins and 31 losses, the Bobcats are nothing short of the NBA’s stand-up comedy act. However one of the worst jokes is about to be revealed and will not have many people laughing.
The coach of the NBA’s worst team, Paul Silas, may have landed himself in a bucket of boiling water when he accepted the invitation to be the spokesperson for an over the counter medicine called Clotamin. The drug may be one of those miracles in a bottle that come out every year but the company who owns the over the counter drug is under agreement to be acquired by SNPK which is under investigation.
After coming onto the penny stock scene having traded nearly 160 million shares in a few hours and gaining a whopping 2 percent, trading on SNPK normalized to respectable levels until Friday afternoon when the volume of shares traded became abnormally high again.
Bottom Line: It may all be a publicity stunt to gain investor’s attention. Preliminary indications by the investigators looking into SNPK are that the recent trading activity had been conducted by persons unknown to the current management.Share