If you followed the price movement with Luke Entertainment, Inc. (LKEN.PK) on Friday, you’d probably be quick to agree that the trading was near-criminal. Market Maker (MM) Finance 500 Inc., who goes under the I.D. ‘FANC‘, kept shares under duress the entire trading session. As buyers stepped in to challenge the asking price, MM FANC, the self-proclaimed ‘Quiet Giant’, continuously dropped his asking price. Even when buying pressure mounted, FANC somehow managed to find a seemingly infinite number of shares to offer for sale – and then some!
But to understand the latest, we’ll need to fill you in on how and possibly why these events transpired.
On Thursday, for the first time in a long time, Luke Entertainment, Inc. (LKEN.PK) came out with a public announcement that the company had acquired AccuBrite, Inc., a manufacturer of inkjet refill kits.
Naturally, with mostly broken trading in the last year, the stock price exploded 375% on the acquisition news.
But unlike most hype-driven OTC stocks, the excitement came to a screeching halt all too soon. That very same day the price sunk. And on Friday the price collapsed violently, losing more than 75% of its value.
This brings us to the later ‘why’.
Luke Entertainment, Inc. (LKEN.PK) stock flopped because someone supplied the market with a large quantity of shares. So many shares were supplied that MM FANC saw it advantageous to continually lower his asking price, regardless of buying pressure.
We find it ironic that Finance 500 Inc. advertises a section on ‘How to Avoid Scams‘ in the center of their home webpage. But we’re not one to point the finger. The company has a responsibility to the shareholders to keep them informed and aware of any material events.
Surely a 75% collapse in stock price justifies a press release? It must, for we don’t see any other way investors will be able to recoup their money if the company does not comment on the bizarre market activity.
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