NaturalNano, Inc. (OTC:NNAN) Promotion Provides for the Next Surge
16 Dec 2010

Yesterday the stock of NaturalNano, Inc. (OTC:NNAN) delivered one more time a huge gain to some risk-loving investors. On no news but on a stock promotion, the share price surged and the trading volume reached its highest value ever.

The total value gained from the previous close was 44.44% and the share price closed the market at $0.0065 on the notable total trading volume of almost 36.6 million shares. The surging up of NNAN stock from the past two days has already been seen by traders, as a surge of a comparable size happened also in November, although it took the share price at that time only one day and a much smaller trading volume to hit the $0.009 level.

Since NaturalNano has not released any news whatsoever, the reason for the November rush remained speculative. But yesterday it looked like the reason is well-known, namely a stock promotion for which the promoters disclosed no compensation. NNAN was on Wednesday’s watch list of another promoter as well, but he also states no compensation in his disclaimer.

The previous officially known event around NaturalNano was the filing of its quarter results in the middle of November, which was accompanied by the rapid drop off the share price from the just reached highs. The financial report shows that the company has reduced its total assets by almost a half to around $400,000 in the nine months ended September 2010, through spending almost all of its cash and reducing its property and equipment. As opposed to the assets, the liabilities kept growing and exceeded $7 million at the end of the reported period.

In such a financial condition, it is not clear if NaturalNano may survive long enough to see its business profitable, unfortunately the same holds for the current level of the share price. Traders should look for dilution as $3.7 million of the debt is in convertible notes.

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