{"id":7089,"date":"2015-10-08T09:02:06","date_gmt":"2015-10-08T09:02:06","guid":{"rendered":"\/?p=7089"},"modified":"2015-10-08T09:14:38","modified_gmt":"2015-10-08T09:14:38","slug":"entertainment-arts-otcmktseari-crashes-even-harder","status":"publish","type":"post","link":"\/articles\/entertainment-arts-otcmktseari-crashes-even-harder\/","title":{"rendered":"Entertainment Arts (OTCMKTS:EARI) Crashes Even Harder"},"content":{"rendered":"\n

Entertainment Arts (OTCMKTS:EARI<\/a>) lost another 31.15% of its market cap yesterday in a corkscrew nosedive of a plummet that threatens to leave the ticker in double zero land before long. <\/p>\n

Enterprising investors that keep an eye on the OTC Markets already know the cause of EARI<\/a>‘s <\/strong>crash. However, even if you haven’t looked at its charts, it’s not difficult to guess why the ticker is falling as hard as it is.<\/p>\n

Nothing can bring a company’s market value crashing down like a failed pump campaign, and the effects of the one that EARI<\/a> <\/strong>was targeted by can rightly be summarized with one word – disastrous.<\/p>\n

Then again, the fact that the company has been targeted by pumps is enough of a red flag in and of itself – and unfortunately it’s not the only one.<\/p>\n

Here’s a riddle for you – what goes hand to hand with pumps on the OTC Markets? If you guessed “toxic convertibles<\/em><\/strong><\/span>” – congratulations, you got it right. Large amounts of debt getting converted into shares and then finding its way on the market is the leading cause of horrific crashes of pumped-up tickers. This is why when an investor sees that a company is being pumped, the very next thing he ought to do is check to see if the company has any toxic convertibles.<\/p>\n

A quick check reveals that EARI<\/a> <\/strong>has notes outstanding with provisions as toxic as to allow conversions at a discount of 40%.<\/p>\n

One logical conclusion may be drawn from these facts. It seems like the noteholders were just waiting around for an opportune moment to make a quick buck, but unfortunately for them, the pump targeting EARI<\/a> <\/strong>failed. The ticker nevertheless buckled under the pressure, and is now headed down on residual momentum.<\/p>\n

Investors should think long and hard and weigh all the risks involved before deciding to commit to EARI<\/a> <\/strong>under these circumstances.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Entertainment Arts (OTCMKTS:EARI) lost another 31.15% of its market cap yesterday in a corkscrew nosedive of a plummet that threatens to leave the ticker in double zero land before long. Enterprising investors that keep...<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1876],"class_list":["post-7089","post","type-post","status-publish","format-standard","hentry","category-news","tag-eari"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/7089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=7089"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/7089\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=7089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=7089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=7089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}