Neologic Animation Fails to Make the Grade Today on Heavy Volume (NANI)

Neologic Animation (OTC: NANI) suffered a setback as the stock declined 10% today. Shares of the educational and entertainment company ended the trading session at $0.134, or down 1.5 pennies from last night’s closing price. Most noticeable was the number of shares traded during the session. Over 3.8 million shares exchanged hands today, which towers over the average daily trading volume of 497,000. Traders looking ahead will have to decipher what signals this spike in volume is sending.

Shares of Neologic Animation jumped out of the gate this morning, hitting its intraday high of $0.164 in the first 30 minutes. The first half-hour of trading also saw nearly two-thirds of the day’s volume trade. The stock slowly declined the rest of the day as volume trickled in. The closing print was less than a penny above the low for the day.

The stock began actively trading five months ago. Since February, share prices have touched a low of $0.04 and a high print at $0.20. From early May until the end of June, Neologic Animation share prices had increased five-fold.

The Chinese company formerly known as Narnia Corporation is an after-school education website that combines learning along with entertainment. The website uses Flash games to explain subject knowledge. The games can be interactive and are capable of linking a community of users. Subjects covered on the website include art, music, science, math, language and cultural education. What, they don’t have gym? The company faces numerous competitors within China.

Activity among newsletters promoting the stock was also brisk today. Penny Stocks Guru, Stock Reports, The Stock Psycho, Darth Trader, and Explosive Penny Stocks released comments on Neologic Animation.  The Stock Psycho and Darth Trader have been compensated up to $100,000 each for their promotions. Stockpromoters.com lists a total of 62 promotions for the company.

Penny Stocks Guru also took note of the news that Mr.Chen, a pioneer in the Chinese interactive gaming industry, has joined the board of Neologic Animation

On June 25 and 26, 2012, about the time the stock peaked, PSCircle put out several notes on the stock. The comments can be viewed on Stockreads.com.

Twitter has not lacked commentary on Neologic Animation over the last few days. On Monday, @StockPycks had this to say, “$NANI indeed and some very good news coming.”

Some recent headlines on the company include:

  • Today, July 18, 2012: Neologic Animation is well positioned to benefit from the booming virtual gaming community. The story highlights how the company’s Flash game is designed to support 100 million primary school students. The multi-player game industry in China generates $5 billion in revenues with plenty of room for expansion.
  • July 16, 2012: Neologic Animation opens a marketing center in Shaghai.
  • June 28, 2012: The company plans to initially reach 600,000 customers and 200,000 online users.

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Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email (alanmasterson@wallstreetpr.com) or his Google+ page (https://plus.google.com/103338576216002376250).

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