SMC Recordings Inc.(PINK: SMCE) Breaks Down Again After the Peak
29 Mar 2010

SMC Recordings is heading towards the bottom again on March 26. After reaching this year’s top at $1,55 on March 24, SMC started falling down again progressively and lost remarkable 42,59% for only two trading days, inspite of improved investor relations and new star releases.

At first sight it seems contrasting to the latest furor of SMC’s best selling artist Rakim, who had a major placement with his song “Euphoria” on Ultimate Fighting Championship Primetime episode 2 last Thursday. The closing price of $0,8899 on Friday is though probably much nearer to the fundamental value, considering that no actual official financial data about the company can be found, along with the absolute lack of liquidity, seen on the extremely low trading volumes from the last three months.

But what could be the reason for the climbing that started four days before from $0,84 per share? Two related events from the past weeks may have awakened investors’ interest. On the one side, SMC announced joining the customized internet platform, showcasting emerging growth stocks. SMC CEO David Newberg is hoping the company will thus to provide the public with another source of current information about the company’s activities.

The full-service independent record label has made another coup a couple of days before that by making a partnership with the label Team Taco for the latest project release of the successful and highly talented Hip Hop Artist Murs. His album “ForNever” will be produced by 9th Wonder, who already worked for stars like Jay-Z, Mary J Blige and Coldplay.

The joining to the reminds some attempts of promoting unworthy stock and has had like most promotions temporary positive impact on the market price, increasing slightly the daily lows. The purpose of the explicitly stated promotion of SMC for $100,000 yesterday is probably to strengthen that effect.

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