Konared Corp (OTCBB:KRED) Takes a Hit

7KRED.pngQuite a lot of things happened before the start of yesterday’s session. First, an entity called IPO Premium wrote a report on Konared Corp (OTCBB:KRED) which appeared on the company’s profile at Yahoo! Finance.

Like the pumpers who spread the word around through hard mailers and landing pages, IPO seem quite optimistic about KRED‘s future. The report talks a bit about the coffee fruit and its brilliant antioxidant properties, about the retail locations where you can find KRED‘s drinks, and about numerous small beverage companies that, at one point in time, got acquired by giant enterprises like The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP).

Unlike the pumpers, IPO didn’t receive compensation for publishing their optimism on the internet and are instead hoping to earn some revenues through new subscriptions.

A few hours after the publishing of the report, KRED came up with some news of their own. Half an hour before the opening bell they issued a press release informing us that they have completed a $1 million private placement. They didn’t disclose any details around the deal and said that we will learn everything we need to know from an 8-K form which should come out in the coming days.

If you’ve been following our articles closely, you know that KRED are in a desperate need for cash. The private placement, alongside the increased exposure from IPO’s report seemed to be the catalysts needed for an extremely positive session. And during the first few minutes, it looked as if investors are going to get just that.

The ticker opened the day with a gap up at $1.30 and remained stable for some time. At one point, however, it slipped and fell. There were a lot of fluctuations throughout the day, but, as the closing bell drew nearer, the slide became steeper. KRED finished the session at $1.04 which is around 16% below Monday’s value.

The $2.3 million promotion might be starting to take its toll and today’s session is also shaping up to be an interesting one. About an hour before the opening bell, a Seeking Alpha contributor who calls himself Penny Stock Realist published an article saying that KRED could drop by as much as 70%. In his expose, he speaks about the multi-million dollar pump, about the people who hold quite a lot of discounted shares and about the company’s shaky financial situation (basically, all the things we informed you about in our previous coverages).

In the disclaimer, Penny Stock Realist says that he currently holds a short position in KRED and because of this, some investors are accusing him of attempts to deliberately drive the price down so that he can cash in on the profits. Whatever his motives are, we’ve seen him cover other promoted OTC tickers like Life Stem Genetics Inc (OTCMKTS:LIFS) and Makism 3D Corp (OTCMKTS:MDDD) and, more often than not, his articles have an immediate and negative effect on the stock performance.

5KRED_logo.jpgKRED, however, is proving to be a tough nut to crack. The ticker did start the day on the wrong foot, but it has managed to regain some of the lost ground. About forty-five minutes into the session, it’s still in the red, but only just. And with so much time until the closing bell, things could go either way.

In any case, considering the huge promotional budget, we expect to see the pumpers trying to lift the price once more. Whether they’ll be successful or not remains to be seen.

You may also like...