Sunbelt International Corp. (PINK:SUNB
) jumped up during Monday session and crossed the 50-day moving average on the latest press release of the company published on Saturday afternoon. However, it is not likely that SUNB starts appreciating on a single positive piece of news.
After the surge SUNB closed the session with a 4.80% increase in its share value at $0.131. Unlike the price increase, the trading volume was quite impressive with over 3.88 million traded shares, representing the heaviest trading volume of SUNB for the past half a year.
SUNB traded in a channel for a good reason, in fact the company has no assets or operation to justify its $8 million market cap and it looks like the value of the shares could crash down dramatically any time.
On Saturday, SUNB published the second press release for the month, claiming it would attempt to penetrate Asian wind energy market over a new test facility located in a remote area in Mongolia. Earlier this month, SUNB also announced it were about to sign a contact with a Chinese manufacturer for the production of high quality wind turbines.
Market reacted to both press releases mainly with a huge increase in the trading volume as there is no proof whatsoever that SUNB has started any business at all. From its latest quarter report, it is evident that as of end-September 2011 the company had no cash, no assets, no revenue and no operational activity of any kind.