For no real reason other than a float of around 20,000,000, the penny stock of Network CN, Inc. (NWCN) has been on a significant run for the last 2 weeks setting a new 52 week high just seconds before the closing bell on Tuesday. Although the China based media advertising company saw their revenues drop more than -50% for the year ended December 31, 2013, shares of NWCN stock have more bullish than a “Cinco de Mayo” fiesta in Juarez, Mexico since bottoming out at 0.059 on April 21st. Even the chatter on message is non-existent as to why this “left for dead” Chinese penny stock has better than doubled over the past 2 weeks which leads us to believe that a possible alert and dump is due to come unless the 7,500,000 shares sold at the end of February, 2014 for $0.10 each are just finding their way to new holders other than the 506 recipients.
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NWCN Stock Quote
Market Cap: 21.21M
Last: 0.183 ▲ +0.0580 (+46.40%)
Dollar Volume: $141,053
14-Day RSI: 72.69%
1st Resistance Point: 0.1993
1st Support Level: 0.1523
52Wk High: 0.185
52Wk Low: 0.0112
Heading into Wednesday, hardly anyone knows anything about Network CN and even less about why NWCN shares have appreciated nearly 100% already this week. It’s not like they lit the world on fire with their 10-K filing which showed how advertising revenues from their out-of-home advertising in China through the operation of a network of roadside LED digital video panels, mega-size LED digital video billboards and light boxes in major cities, their sole source of revenues, dropped from $1,835,940 for the year ended December 31, 2012 to $891,366, a decline of -51.45%, for the year ended December 31, 2013.
However, on February 24, 2014, Network CN entered into 3 stock sales, all of which at $0.10 per share, which raised $750,000 which is due to be used for their ongoing operations. CPE II, L.P. and Wong Wing Kong each contributed $300,000 for 3,000,000 shares fo NWCN stock, while FAVA International Holdings Limited contributed $150,000 for 1,500,000 shares of NWCN stock.
From the outside, it looks like Network CN is going to need that $750,000 and then some in order to literally keep their lights on for their outdoor video billboards considering their gross loss for the year ended December 31, 2013 was ($1,819,399), almost exactly as much as when they generated more than twice the amount in revenues during 2012. Hence the recent surprise rise of NWCN shares from their 0.045 level a couple of weeks ago deserves some attention, but not until they return back to below where the 3 investor groups got in.
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About NWCN Stock
Network CN, Inc. is a development stage company focused on becoming a nationwide leader in providing out-of-home advertising in China, primarily serving the needs of branded corporate customers.
Issued and Outstanding: 115,919,467
Executives, Directors and Beneficial Shareholders over 10%: 95,893,733
Last 5 Trading Sessions:
Unfortunately, NWCN can be erased from the list of possible penny stock runners after having looked closer at them. This doesn’t mean that the recent volume isn’t someone gearing up for a possible promotion of NWCN stock. When you think of it, what business does Fava International Holdings Ltd., a Honk Kong publicly listed company, have investing in an outdoor advertising company when they primarily engage in the provision of funeral services in Hong Kong?