NUBV Nutripure Beverages rallies then fizzles
Friday 15th of February 2008 02:18:32 PM
When I first mentioned Nutripure Beverages over here at the Penny Stocks Alert it was trading at around .0003 . Not too much time passed before it started building an uptrend, all the way to an intra day high of .0014.
So percent return range from .0003 to .0014 is 366%. But of course it is usually impossible to sell the tops and buy the bottoms. But any percent return between 1% and 366% is just fine with me.
The problem with NUBV seems to be the dilution issue. All the while I was watching this stock trade on Level II, it really seemed obvious that the enormous amounts of volume would be hitting the ask and yet the ask took forever to move. But then, the moment the bid was hit with a few sales they immediately thinned it out.
That type of action seemed to be happening almost all the way up.
In addition, the breakout above .001, while on extremely heavy volume was honestly somewhat disappointing. When you great a breakout of a significant resistance line, you really want to see wide price bar spread combined with the volume, not just the heavy volume. The reason is that if you do not get the WIDE price bar spread, or wide enough that is, then it starts to become obvious that what is happening is something called ’shortening of thrust’. Basically it means that all the big buying power is being ABSORBED head on by selling and preventing price from advancing. It is usually a very bad sign and probably a bad sign of heavy dilution as well.
The RSI on a daily basis was still around 50 range when we were in the breakout area… so it did have me thinking that NUBV had a lot of room to run before being overbought.
And after that so called breakout, I really DID want to see that NUBV could now hold support at .001.
But guess what?
It did not hold that support that good and it started becoming sloppy.
BZZZZZZZZZZZZT !
Wrong.
After it started to fail at holding that support after the supposed breakout, the red alarms should have been ringing in your head.
Surely it seemed that NUBV had some sort of ’story’ going for it. They have a patent for what seems like a great idea and a great product with a possible bright future.
But with the bloated capital structure, the heavy dilution and the questionable trading behavior, it is time to look elsewhere.
But still! Even after all that heartache, as a careful and prudent trader you most likely could have snatched between 10% and 366%.
NOT BAD.
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