Last week was not a strong week for Hangover Joe’s Holding Corp (OTCMKTS:HJOE) stock as it witnessed sharp fall from level of $0.0040 to $0.0025. The company issued few PRs to support the price but it yielded no positive results as the stock eroded over 40% of its market value in just five trading sessions.
Hangover published a promising PR on May 22 when it disclosed that it received a purchase order along with deposit from a firm known as Cure Korea. Apart from name details, the company didn’t provide any additional information in the PR. The things get worse as there is no other information available of the company on the web including website and a logo. As a matter of fact, the only place where the name of Cure Korea comes on the web is in the PR issued by Hangover.
The red flag
The latest PR highlighted that the controversial “thehangovershot” Twitter account was the official social media page of the company itself. It is the same account that made buzz in the market by releasing violent threats and obscene statements in English and French against Janice Shell. She is a known penny stock investigator. After the news, the threat posts have been removed from social media account.
The confirmation of the so-much hyped account with Hangover is not good news for the company. Moreover, it targeted Ms. Shell who is known for her investigation on OTC traded stocks. In fact there are some OTC companies that were suspended after she issued research reports on them. The names of these companies are Olie, Inc. Southridge Enterprises and Citadel EFT Inc. The worst part is Hangover is still as Pink Info Company as it has not released its annual report for last year.
Hangover Joe’s Holding Corp (OTCMKTS:HJOE) jumped up by a huge 20% in the first trading session of the week though the volume pattern was not that encouraging. The volume was marked at 59 million, much less compared to the daily average of 145 million. That kind of price & volume mismatch suggests that the rise may be corrective in nature and mainly consisting of short covering only. The area around $0.006 will keep acting as a stiff resistance and the major decline may not be over yet. Any further decline may expect major support from $0.0010-15 levels.