The Dean’s Follow Up on $VKNG
November 3rd, 2009 at 8:40 am Posted by The Dean
On Friday, The Dean questioned, “What’s Going on with $VKNG?” because the stock was trading insane volume and increased as much as 1500% towards the end of last week on absolutely no news.
Friday, $VKNG closed up more than 100% but fell as much as 40% yesterday with profit taking, before closing 30% in the red. For The Dean, it makes sense that many shareholders returned to cash out on their big profits during Monday’s trading but could this be due to people realizing $VKNG was inflated by pure speculation?
On Friday, The Dean placed a call to $VKNG’s investor relations partner but learned that the company no longer has representation. This prompted The Dean to call $VKNG and he was directed to speak with the company’s Chief Financial Officer.
Instead of answers, however, The Dean was told by a gentleman by the name of John Conington, claiming to be the CFO, that the company “wishes they knew what was going on.” Besides the fact that $VKNG’s website lists a Robert Mathews, not John so-and-so, as their CFO, the conversation revealed no plausible explanation for the recent surge in trading volume.
In fact, the mystery man who returned The Dean’s call explained that, like many biotechnology and development stage companies, $VKNG needs funding for various products in their pipeline.
The Dean also received feedback from a handful of his Honors Students who, like The Dean, wanted to know what was going on but found no valid explanation as to why $VKNG had traded millions of shares and jumped over 1000% in less than 3 days.
What’s perhaps even more surprising is that $VKNG released news this morning announcing third quarter results and business updates. $VKNG also mentions “a significant order for its current 3Di system,” which could mean profits for the company moving forward.
As one of The Dean’s Honors Students suggested, a rumor could easily spark anticipation of big news but, like The Dean, this student feels there’s plenty of profits still to be taken from last week’s rally, which could dramatically affect share value.
At the same time, $VKNG is up more than 10% this morning and The Dean believes the $VKNG saga could be far from over.
