Fresh Healthy Vending International, Inc. (OTCMKTS:VEND) Starts to Lose Ground

Fresh Healthy Vending International, Inc. (OTCMKTS:VEND) just reached a good round level when investors saw the $3 threshold as the limit of the current rising trend. VEND slid down more than 13% to $2.60, on selling volumes of $4.64 million, the most active selling in the past three months.

The sudden move downward recalls the events of November, when VEND moved down more than 50% within two trading weeks. The major reason was the slowdown in the distribution of paper mailers. And since VEND rose again due to a new paper mailer campaign, yesterday’s fall looks even more ominous, like the beginning of a new deep crash.

Now, VEND is making a new bid for a comeback trough a press release. The company will be presenting later on Thursday at Franchise Expo South in Houston. The event may add a bit of noise and perhaps add a bit more buying, but for now VEND seems to have relied too much on paid promoters, and is due to sink to a more natural price level.

And the Expo in Texas will have to actually deliver the promised new eligible franchisee candidates for the machines of VEND. The company, while promising, will need to show enough growth to warrant a market capitalization of above $65 million.

VEND has still one more advantage, a mere 25 million shares outstanding, which creates scarcity and daily volumes of a million shares or below are enough to move the price significantly. Still, selling happens, and there are enough shares waiting in the sidelines to bring the stock down. Currently, officer Nicholas Yates has an indirect holding of more than 15 million shares.

Investors’ forums are seeing huge downside risks for VEND, and will further accelerate the pessimism.

At this price range, Provectus Pharmaceutical, Inc. (OTCMKTS:PVCT) is making a bid to continue its leg upward, even without a boost from a paid promotion. PVCT is also a part of the trending in pharmaceutical tickers at the beginning of the new year, as businesses tighten their game after the holiday season, and stock prices easily reflect the optimism.

Convenience products may be promising, yet paper mailers in the end do the final damage. We’ve seen the case of the Alkaline Water Co, Inc. (OTCBB:WTER), which peaked at $1.20 on the promotion. For months, the ticker managed to drift sideways around the 30-cent levels.

For some selections, all may not be lost, and the stock retains some of the value, even making small runs upward. But mostly, the big gains are in the past, as they seem to be for VEND.

While VEND may rebounce briefly, it it best to estimate well the downside risks and avoid investing unaffordably.