Nx Global Incorporated (OTC:NEGS) On the Verge of Doubling Its Value
By Martin Tsvetkov
Yesterday's trade on the stock market brought about a huge movement of Nx Global Incorporated (OTC:NEGS, NEGS message board). By the end of the session, NEGS stock had gone through the roof, ultimately closing at $0.0013 per share, marking an 86% increase over the previous day. If this were not enough, the volume also skyrocketed to a staggering 122+ million, six times higher than the turnover generated last Friday, as well as light years away from the daily average volume of 15 million.
The surge seems shrouded in deep mystery, especially because of the lack of any up-to-date information.
In addition, NEGS stock has not been promoted since January. That is why what happened yesterday has already raised doubts among iHub posters. Some of them believe that the extraordinary performance of NEGS stock could only be attributed to nothing else but a fat finger trade. Anyway, the current scenario seems to have appealed to a number of investors who are now willing to see NEGS as the next ten-bagger.
Although there might be a grain of truth in the above mentioned hypothesis, traders should not ignore the fact that prior to the session NEGS occupied the 0001 stock tier, which automatically makes it extremely volatile and unpredictable. Not to mention that NEGS had been experiencing a steady decline for six months before it finally exploded yesterday.
Being a diligent SEC filer, NEGS occupies the premier OTCQB marketplace. For what it's worth, the company describes itself as an enterprise focused on developing business by acquiring different businesses without holding a controlling interest. As vague as this description may sound, the actual results from NEGS's operations as a business developer are even more enigmatic. As of Jan. 31, 2011 the company's latest quarterly report showed:
$6K in cash and cash equivalents;
negative working capital to the amount of $850 thousand;
training revenue of $32K;
net income in excess of $320K due to a gain on derivative instruments of $675 thousand.
The upcoming sessions will most probably prove whether yesterday's performance of NEGS stock was triggered by a fat finger error, or it marked a turning point in its overall trend.
