Investors in American Green Inc (OTCMKTS:ERBB) cheered as the stock posted hefty gains on Wednesday’s trading session. The stock surged more than 17% to close at $0.00960 per share on 61.85 million shares traded, one of the heaviest daily volume days in past four months. The movement in ERBB’s stocks has been dramatic in last two months of 2014. The stock tumbled down to double zeroes. However, in last trading session it managed to erase losses posted earlier in a week.
American Green has not reported any press releases this week. It launched its much-talked and hyped product ZaZZZ machine a month ago. However, it failed to support price movement in American Green’s stocks. The company just managed three green days after airing machine launch on YouTube. The new PR didn’t succeed in getting positive response. The underwhelming event organized by the company and the following press releases related to joint deals with pink sheet firms in poor financial state resulted in poor performance of ERBB stocks earlier in the week.
The share price of American Green Inc (OTCMKTS:ERBB) stocks has tumbled down more than 40% year to date. Those investors who bought the stock in October, when it was trading at six-month highs, are now sitting at losses of more than 60%. The disastrous performance is welcomed with zest by the most fanatical supporters of the company who are now buying cheap shares. This scenario resembles the Black Knight sketch where though the knight doesn’t have his limbs, still he keeps saying “it’s just a flesh wound.”
Major red flags
American Green Inc (OTCMKTS:ERBB) still has million of dollars to pay due to outstanding convertible debt, which turns into company’s common shares at almost 50% discount from its lowest closing bid price. In the last quarter alone, American Green had issued more than 100 million shares for $0.0005 per share.