Videolocity International, Inc. (PINK:VCTY) Takes a Break Waiting for Some News
22 Jul 2010

After the short walk to the magnificent three-day highs at the end of May, Videolocity International, Inc. (PINK:VCTY) stock went rapidly to sleep again. Yesterday, it seemed that nothing has changed.

The direction of move was downwards again, but Videolocity still shows enviable sustainability and manages to stay above yesterday’s $0.0073 close most of the time. The volume jumped by around 50%, but it was not in favor of the stock, whose decline was however a tiny one, especially for a pink sheets traded company.

The 50-day moving average far above and the 200-day one far below, the stock price seems now to be standing on a crossroad. With the latest promoting appeal for VCTY as the next big winner being sent out more than ten days ago, the quite period is not surprising.

Though, there were some corporate updates recently, that should be taken with caution as the company has made official filings with the SEC for the last time more than three years ago and thus investors willing not to rely on promoters but to do their homework properly can be considered clueless about the current state of the business.

Yesterday, driven by investor inquiries, Videolocity International provided information about its share structure, which is an interesting issue in regard of the nearly 4 billion shares outstanding end of June. The PR was supposed to calm down investor worries, as it said that 1 billion have been allocated to a subsidiary, 1.5 million to China Hydro Company (with which supposedly a merger procedure is currently running) and another 300 million were thought for another pending merger, with an unknown US-based video rental company.

It looks like the market was fearing dilution, as if everything else was clear around Videolocity’s business. The above mentioned shares were restricted according to the PR, thus eliminating the market’s fears. As the “news” about the supposed to be running mergers are anxiously expected, VCTY may have its break for a while.

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