QED Connect, Inc. (OTCMKTS:QEDN) Spikes Then Heads Down

Yesterday brought QED Connect, Inc. (OTCMKTS:QEDN) an amazing 76.74% jump in share prices, all made possible by the company’s announcement that it’s on the verge of a roll-out. Now, it appears that it’s on its way down again.

QEDN was once quite a notorious company. The stock enjoyed the attention of pumpers like StockMister in 2013, but has not been pumped recently. The company has adopted another tactic that gained popularity in recent months, and yesterday, it soared up to on pot publicity. Like many other penny stocks, QEDN must have seen an excellent opportunity for self-promotion in the marijuana rush that is currently gripping the OTC.

The first sign that this was happening was the company’s announcement that it will be acquiring Emerald Med Farms LLC., a California based medical marijuana company. There was a press release about the acquisition, but the filing on the matter never did hit the web, so there’s no real way to know whether the PR was truthful or not, and how the acquisition has affected QEDN if it did take place. QEDN‘s case is more than a little suspicious in this respect, because as of March 31,2014 the company had:

• Cash – $2 thousand
• Total current liabilities – 4.2 million
• NO REVENUES
• Net loss – $64 thousand

How did the company manage to acquire a subsidiary with only $2 thousand on hand is a mystery that QEDN is reluctant to unveil. Obviously, this did not deter marijuana stock enthusiasts from jumping at QEDN stock yesterday, when investors were driven to a buying frenzy by the follow-up press release.

Said announcement declared that QEDN‘s subsidiary is expecting its first crop of marijuana harvested within four to six weeks, with record yields. If this does happen, the company may indeed be in for an exciting upward ride, but as of now, investors have absolutely no way to be sure that the whole ordeal is not just another publicity stunt aimed at promoting the company’s stock. Since exaggerated and downright false PR is not uncommon with OTC marijuana companies, investors are right to be wary.

Only time will tell if the company can continue its explosive growth, but today’s red start does not really bode well for stock prices. QEDN is currently trading 15% down in today’s session.

Another OTC company that made tremendous gains to its market value yesterday is HIGH PERFORMANCE BEV. (OTCMKTS:TBEV), who jumped 346.15% and closed at $0.0058.