Gediminas Jasionis

Super Nova Resources Inc (OTCBB: SNRR) Goes Pop - Will the Stock Rally Continue?

by Gediminas Jasionis August 25, 2009
exploding stock shines only for a momentSuper Nova Resources Inc (OTCBB: SNRR) recently announced the formation of a strategic partnership with Symplx Group. Announced and viewed as the ultimate coalition that will change the company's future, this news worked as a strong force driving the stock price up. However, it seems the company decided to add their own catalyst to this rally and paid some $32 thousand dollars and a bunch of shares to three stock promotion websites.

From one perspective - a wise decision, which succeeded in pushing the share price up. From another perspective, those who bought some shares, might not have calculated their risks correctly and did so upon reading the hyped articles.

Buying some stock when you can't even look at the company's fundamentals is only what professional swing traders and people with high drive for risk would do. In this case there isn't really anything that would give out how Super Nova Resources is doing at the moment. Except for the news announcements, the company has yet to file a single financial statement since they started operations under the current name back in November 2008.

A promotional video that I have found on one of the sites suggests playing the stock short term and points out a couple of indicators that have obviously moved up since the stock price jumped. Personally, I don't see how technical indicators would provide any valuable information on such a volatile and highly illiquid stock, such as this one.

Monday's 40% gain was influenced by a news announcement and probably stock promotion. Those who were not on board before the move should forget about this opportunity and not jump in right now. There are only minuscule chances of follow through, which brings in a risk not worth the possible gains.

Reference:

Super Nova's SEC filings

Comments 0

Type the characters that you see in the box (5 characters).