The stock price development of NXT Nutritionals Holdings, Inc. (OTCBB: NXTH or NXTH.OB) is not something seen every day. After rallying for 20 consequent days, the price shot back down on Monday erasing all of the previous gain. What is interesting about this situation is that trading opportunities have emerged from this sell-off.After the big sell-off the company also published a letter to shareholders praising their product SUSTA and driving our attention to its potential in the market. However, despite the potential of their product, they are still making too little sales to be living off them and are currently counting on debt financing.
Stock price was rallying purely on reaction to this potential and that’s the reason it couldn’t go on too far without major correction. But after getting back to the point it was at a month ago a bounce up on Wednesday was not something unexpected.
It’s a mad time for this stock and possibly the rally will emerge once again. Although Wednesday’s intraday appreciation will possibly stop at $2, the price could still reach 20 day SMA line at $2.44 in the coming few days. Trading volume is pretty good at the moment and interest in the company is likely to grow if their product is really reaching out to all the 1,200 supermarkets, as announced in the letter to shareholders.
User comments
The aftermath is unfortunately very typical compared to many penny stocks I've seen. Unfortunately for potential longer term investors like myself, when these sharks are scavenging whatever they can get it completely changes the game.
I believe in the potential of Susta and NXT Nutritionals, unfortunately day traders have screwed this one up too. Thanks.