Praxsyn Corp (OTCMKTS:PXYN) Hits a Wall at $0.08
Back in August, Evon Midei, a Director of Praxsyn Corp (OTCMKTS:PXYN), sold a total of 1,850,000 common shares at prices ranging from $0.0545 to $0.056 per share. He probably isn’t too happy about his decision right now because currently, the stock is sitting at $0.0752 or about 33% above the levels at which Mr. Midei disposed of a part of his holdings. That said, PXYN‘s performance is not exactly perfect.
It’s been exactly seven days since we covered the company under its new name and ticker symbol for the first time and it’s fair to say that the shareholders have been on a wild ride over the last five trading sessions. Immediately after our article went online, PXYN slipped and in a matter of two days, it managed to drop from $0.078 to $0.065. It then found bottom, however, and bounced back to $0.075. Yesterday, it spent most of the time flirting with the $0.08 mark, but at the end of the day, breaking through it proved to be a difficult task and it eventually closed the session just 0.4% in the green.
PXYN is clearly hesitant and it would appear that some people want to see a more stable behavior. Unaffiliated third parties have been splashing out money on a paid promotion for the ticker and we’ve been receiving emails since October 30. The biggest compensation, $20,000, was pocketed by StockPickVIP, but even that wasn’t enough to make the stock less volatile.
But are investors worried about the unpredictable swings?
By the looks of things, they aren’t bothered at all. They are still as excited about the upcoming 10-Q and they still seem to think that once the figures are out, nothing will be able to stop PXYN from climbing. Some even reckon that this is the last chance to get shares at such low levels because the financials (which should be posted within the next few days) will be so healthy, that the big fish are going to be all over the stock before anyone has the time to react.
Now, we’ve been around OTC companies for a while and we’ve heard these words many times before. On most occasions, such claims prove to be little more than empty optimism, but in the case of PXYN, the shareholders might just have something to cheer about. As we mentioned last week, Q2 revenues have experienced a massive 4,560% jump year over year and people expect to see even higher figures for the end of Q3. That said, impressive sales won’t be enough. If PXYN is to truly break out, the company will need to show us a positive bottom line and although the people around message boards seem convinced that this can happen, nobody can say anything for sure.
Another thing you might want to consider while making your investment decision is the pressure coming from the promoters. As we mentioned already, someone is spending money on touting the stock and chances are, the aforementioned someone is in a position to profit from the increased liquidity and price.
Once you take a closer look at the filings you’ll see that in the past, various entities have received common shares at some tasty discounts. A Schedule 13 from May, for example, informs us that on March 17, Daniel Zagorin, a former Director, got a total of 7,441,584 shares of PXYN common stock at $0.067 a piece. Once you take a look at the historical performance, you’ll see that on the very same day, the ticker opened the session at $0.14 and closed it at $0.148.
A paid pump always brings additional risks, even to the more solid OTC companies. It’s up to the investors to weigh them carefully before putting any money on the line.