Yesterday, the share price and the trading volume of RVB Holdings, Ltd. (OTC:RVBHF
, RVBHF message board
) made an extraordinary jump up a couple of hours before the promotional alert on the stock came into our database. A cash dividend and a pending share exchange agreement could be behind the strange jump.
RVBHF closed the last session with a 40.50% jump in the price at $0.17 and traded slightly over 966,000 shares for the day. As the stock chart shows, the stock made a large gap up at market open and yesterday's session was the first one this month in which the stock got any trading activity.
It is not really a surprise that RVBHF was featured in a paid promotional newsletter yesterday, it is only strange that its share price and volume spike preceded the alert as the intraday chart shows. An explanation could be that some news is yet to come out.
From the company's filings this month, it is known that RVBHF will pay a cash dividend of approximately $0.0848 per share to its shareholders as of record as of the close of business today. The latest filings reveal also that there is a pending share purchase agreement dated July 3, 2011 between the company and three other companies. The closing of that transaction is still subject to certain conditions.
Since the company is a foreign issuer, no quarter reports are available in the SEC database. A 20-F form shows that RVBHF had $23 Million in cash and equivalents at the end of last year, insignificant debt and no revenue, while the market cap is now at $19.88 Million.
Yesterday's promotional alert mentioned only that RVBHF is up over 50% and that traders should keep an eye on it. The compensation for this one time alert was $5,000, paid by a third party. Given the jump from yesterday and the trading alert, maybe it is actually a good idea watch the stock.