Quasar Aerospace Industries, Inc. (PINK:QASP) Price Breakup Leads to a New Year's Low
By Violeta Slavtchevska Date: Apr 19, 2010
Quasar Aerospace Industries, Inc. (PINK:QASP, QASP message board) recorded a new 52 week low on Friday. With very little promoter support this year, the down rush of the stock continued with immense trading by investors, intensively selling out their shares.
On Friday the 13.39% fall landed at a new year's low of $0.0110. Investors must have desperately tried to get rid of the losing stock, as the stock turnover reached one of its highest levels for this year with over 54 million shares traded. With almost 70% of all deals being short sales, the bottom is probably still upfront and it looks like the downtrend can hardly be stopped.
Apart from an uncommon spring about ten days ago, due to some short sellers closing their positions, the stock of Quasar Aerospace Industries has been progressively loosing its value this month. About a week before Friday's crash, Dean Bradley, CEO of Quasar Aerospace Industries, announced progress on the current projects of the company. He also continued his thesis about expected equity reduction, as some lenders have agreed to receive less equity. Previously, the CEO had attempted to induce credibility, declaring his purchase of 6 million shares of the company and his intention to keep buying until he has up to 20% of the company's stock. But even that could not save the bubble from bursting.
The almost 50 paid promotions over the last year, accompanied by regular press releases from the side of the company, have let the stock reach artificially high levels. Speculators were additionally temped by Quasar Aerospace Industries not filing anything with the SEC, and respectively non of the announcements about the company's progress in their business activity could have been either supported or rejected.
But now the shares withdrawal announcement has been an extremely negative signal for the market, as the stock will become more illiquid, and furthermore it is an obvious attempt by the management to push the price of the aviation company up, at least until money is there for the next promotion.
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