Last two trading session have been nothing more than a disaster for SUNX ENERGY, INC. (OTCMKTS:SNXG) as the company wiped out more than 60% of its value. The drop was well supported by surge in volume which was far above the 30-day average of 564,332. Four sessions ago, the company’s stock price opened at 15 cents per cent and now it is at $0.0180. Investors who bought the stock that time are still holding their shares and are sitting at a huge loss of more than 80%.
Sunx Energy is associated with several red flags. The company has remained a favorite target of paid pumps since the start of March. The pumps tried to create an artificial hype, but in case the email alerts were a big disappointment. They failed to have any positive impact on Sunx stock price. However, it was immaterial to pumpers who kept on sending more and more email alerts. The last pump came on Tuesday which was sent by the associates of MJ Capital that is Momentum OTC, Research OTC and , Penny Stock Locks. The pumpers confirmed compensation amount of $11,500.
Apart from the several risks associated with the pumps, there are many other red flags associated with the company. SUNX ENERGY, INC. (OTCMKTS:SNXG) re-launched its business in December 2014. In a press release issued in the third week of February, the company disclosed its product expansion plans. As per the latest annual report for FY2014 filed on March 22, the company had no cash and no current assets. Now, that represents a horrible picture. The total liabilities came at $279,000 while net loss was at $48,000.
Also, the dilution problem is adversely affecting the stock price. The outstanding shares count grew to 478 million at the end of FY2014 from 31.5 million at the end of FY2013. Even after the huge loss in valuation, the company has a market capitalization of more than $8 million.