Investigation over trading of shares pulls Star Scientific, Inc (NASDAQ:STSI) down- CEDC, TVIX
Northern, WI 03/19/2013 (avauncer) - Star Scientific, Inc (NASDAQ:STSI) plunged by 19.69% down to $1.59; close to its 52-week low of $1.58. STSI received a subpeona from the US Attorney’s Office for the Eastern District of Virginia investigating the trading of the shares of the company which includes related party transactions and also included some private placements. To add to the fire, STSI also reported sales of $2Million in 4Q2012 of its Anatabloc nutritional supplement which was only a 14% increment. It reported revenue of $6.18Million and a net loss of $22.9Million in comparison to previous quarter’s mild gain. If the company does not take further steps to increase its profit it will exhaust its cash of $23Million by the next quarter.
Central European Distribution Corp. (NASDAQ:CEDC) slid by 22.86% down to $0.27. The stock kissed its 52-week low of $0.24 with significant volume. The stock is trading below its 20 Day EMA which stands at $0.29. The stock has been experiencing a decline and has broken its support level to touch its low. CEDC officially declared that it has cancelled its offer to convert its 3.0% senior bonds due 2013 to new common stock. The company took this decision in joint agreement of opinion between Roust Trading Ltd. and other beneficial owners of 2013 Notes. CEDC expects that this restructuring will help it in improving its future results.
VelocityShares Daily 2x VIX ST ETN (NYSE:TVIX) is experiencing a volatile session which opened at $4.0 lost around 3.79% with great volume. The fund is below its MA and EMAs. The fund is experiencing a decline since last year and close to its 52-week low of $3.84. The fund performed poorly and has lost most of its value in the last year and is trading around $4.00 since last few months which is thus acting as a support to the fund. Finance ministers across the euro-zone forced Cypriot bank’s depositors to give a piece of their deposits to bail-out the region, triggering further panic amongst investors. The US stock market is slow in reaction to this piece of news, the European markets went down and thus the ETF funds which involve high leverage and volatility are experiencing volatile trading session with gaining in the pre-market session.