Peter Hristov

Alliqua Inc (OTC:ALQA) Gets Even More Speculative After a Promotion

by Peter Hristov April 26, 2011
1ALQA.pngLast night, after the exciting session of Alliqua Inc (OTC:ALQA, ALQA message board), the company became a target for the newsletter. This fact accentuated the intrigue around the stock especially on account of the lack of any explanation of yesterday's surge.

ALQA opened the session with a huge gap at $0.195 and subsequently closed at $0.185, or 19% higher than the previous day's close. During the day a volume of more than 4.4 million shares was generated, which exceeded twenty times the 90-day average. According to data from FINRA, there was 1.7 million short volume, or nearly 40% of the whole volume.

Why would anyone short a company which had received a speculative rating of 1 by Lebed, the highest level of confidence pick? Either people no longer believe the penny stock guru, or there is something else behind the curtain. In fact, the sinuous curve generated by promotions can provide ample opportunities for those who dare short penny stocks.

7ALQA_logo.jpgThat is why the action that took place yesterday on the market seems to be the result of highly speculative forces taking advantage of the expected promotion. Otherwise, there is no other explanation why ALQA erupted so much on volume yesterday. There were neither any publications nor any recent reports of the company that could have spurred investors to trade the stock.

In summary, it seems that the coming session of ALQA will be anything but boring to be watched at. The main question is who will get burned today - the longs or the shorts?

Comments 0

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