Urban Ag Corp (OTCMKTS:AQUM) Slashes a Third of its Value, Issues a PR
Urban Ag Corp (OTCMKTS:AQUM) appeared on the list of the most heavily traded penny stocks after the end of Valentine’s day session. As we wrote in our previous article, the ticker managed to shift more than $830 thousand worth of shares while the price went up by as much as 150%.
The commotion was caused by rumors around message boards that AQUM are about to become a marijuana company. There were no official press releases or any other documents that could support such a claim, but nevertheless, investors were excited by the speculations and they were anxiously awaiting the end of the long weekend.
On Tuesday, AQUM experienced some bizarre trading. It opened the day at $0.0021 (a whopping 320% above its previous close), but it started sliding almost immediately. Six and a half hours later, it was sitting at $0.0009 per share. Clearly, the performance wasn’t the stuff of dreams, but the session still ended in the green.
Yesterday, however, the ticker simply ran out of steam. It opened the day at $0.0009, managed a brief intraday high of $0.001, but then plummeted to the ground. AQUM closed the session at $0.0006 per share and logged a dollar volume of more than $450 thousand. So, what caused the drop?
It’s clear that speculations alone aren’t going to get the ticker far. Indeed, the rumors caused quite a bit of stir, but the more impatient investors probably decided that waiting on a confirmation of the marijuana business just isn’t worth it. The people who bought in on the MJ rumors are clearly not happy about the stock performance, but the long-term shareholders are probably even more infuriated.
Fortunately for them, a press release hit the wire early today which should brighten their day a little bit. We should note right off the bat that, at least for the time being, AQUM won’t be involved in the marijuana industry. Today’s PR informs us that they, through one of their subsidiaries, have been awarded a project for the decommissioning of twenty antenna towers in the states of Minnesota, Ohio, and Pennsylvania.
Investor forums are once again buzzing with activity and while some traders are a bit disappointed by the fact that AQUM will not be a pot stock, others are feeling pretty confident about the future in light of the new developments. People are saying that the contracts will result in huge revenues and they seem extremely excited by the fact that the names of some really big players in the industry (like Alcatel Lucent SA (ADR) (NYSE:ALU) and Verizon Communications Inc. (NYSE:VZ)) are featured in the press release.
The market’s response, however, isn’t terribly positive. About forty-five minutes after the opening bell, AQUM is looking somewhat shaky. It’s around 16% below yesterday’s close and a further drop might cause some panic selling which would really hurt the price. Of course, AQUM is a triple-zero ticker and as such, it’s extremely volatile so we won’t be too surprised if we see it recovering by the end of the day.
Whatever happens, however, the long term performance can not be decided by a single PR. There has never really been a shortage of optimistic news around AQUM, but, as we mentioned in our previous article, there are some quite serious problems that need immediate addressing.
The lack of revenue projections and deadlines in today’s announcement isn’t really helping and, if anything, it’s creating room for more speculations. And we already know what happened with the last speculative run.