SNM Global Holdings (PINK:SNMN) Speculators Short Monster Volume
14 Oct 2010

After the plenteous and grandiose press releases of SNM Global Holdings (PINK:SNMN) did not manage to reverse the stable downtrend of their stock over the last months, yesterday something unusual must have happened, which made the stock price and the volume surge up.

It is still not clear what exactly, but SNMN share price jumped 75% up, closed at $0.0007 and traded the monstrous volume of 344.65 million shares. That value is not only more than 18 times the average trading volume for the stock, but also an absolute record for the past decade of SNMN trading.

The latest announcement from the company was made in the beginning of the month, but it sounded more like just an informative brochure on the prospects and recent developments in the water cleaning technologies. Not disclosing any kind of current material information, SNMN appears to be a phantom, to be seen only in the form of common stocks that get traded from time to time on the pink sheets market.

SNMN shares have been promoted in July this year, at that time also some trading alerts tried to gain more trading volume. As the chart shows, their success can hardly be compared to yesterday’s mysterious action.

Apart from a still undisclosed promotion, another possible answer to the puzzle can be the high speculative interest and the intense shorting observed for such kind of stocks. Not being an exception from the rule, almost half of yesterday’s monster SNMN volume was made up by shorters. If it not a forced short squeeze resulting from their previous profit hunting, one can hardly explain what has driven the inconceivable optimism of all the buyers yesterday.

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