Dominovas Energy Corp. (OTCMKTS:DNRG, DNRG message board) tripled its market value two days ago, after announcing that it has received billions of dollars worth of funding for one of its projects. Unfortunately, the fact that a filing on the matter has not been made has cast a shadow of doubt on the whole affair, and as a result the ticker lost about half of its gains the very next day.
To a reasonable investor, this crash would look just as warranted as the jump that preceded it was baseless. The question of whether or not DNRG has really received the ridiculous amount of funding it claimed to have secured will probably make or break this ticker in the market sessions that follow.
If a report stating that DNRG is to receive more than $1.2 billion to work on its RUBICON™ SOFC systems does come out eventually, its investors will have a very real reason to celebrate.
If, however, it turns out that this is not the case, the light at the end of the tunnel will go out pretty quickly for its loyal supporters and many opportunistic traders alike - not only because DNRG will not get the money, but because its credibility will be ruined. Further, the SEC tends to take a very dim view of companies that spread misinformation of such caliber.
This is why investors need to be really careful with DNRG. Before it becomes clear what direction the ticker will take, any sort of investment in it will be a dangerous gamble that will most likely result in either spectacular success or devastating failure.
In light of DNRG's meager achievements to date, it should be obvious which outcome is more likely. With this in mind, let the buyer be ware.
