As any actor knows, the key to a strong performance begins with an impressionable entrance onto the scene. The stock of Seven Arts Entertainment (OTC: SAPX) must have wowed traders today with its opening act on the OTCQB stage. Until today, the company’s stock had traded on the NADSDAQ, but Seven Arts Entertainment was unable to meet certain listing requirements including a minimum of a $1.00 bid for the stock in the 10 trading days leading up to September 20, 2012. NASDAQ originally halted the stock on July 9, 2012.
In its debut today, shares of Seven Arts Entertainment traded in a 30-cent range from a new annual low of $0.28 to a high of $0.58. When the curtain opened for trading this morning, the stock began the day at the high for the session and a penny below the close on Thursday. It did not take long for sellers to come riding into town as they drove share prices to an intraday low within the first hour of trading. Traders settled down a bit around lunchtime on the east coast and the stock drifted back toward $0.40. The closing bell was rather anti-climatic after a fast paced start, and the stock finished its first day on the OTCQB with a 26% loss to end the week at $0.43. The number of shares exchanging hands for the session totaled 464,000 compared to an average daily volume of 180,000. The volume today was one of the heaviest days seen for the last 12 months. Traders will have the next two days off to decide whether a change in scenery made a difference to the plot.
For a little additional drama this summer, the company announced plans in August to repurchase $250,000 of its common stock at a price no greater than 10 cents adjusted for any splits. Seven Arts Entertainment expects to terminate the repurchase plan on October 31, 2012. The news gave the stock a few days lift in the midst of a 10-month long decline from its annual high of $0.67 on a post reverse split basis.
On August 31, the company surprised traders with a 1-70 reverse stock split that took effect immediately after the close of trading, and then announced yesterday that the stock would began trading in the OTCQB. Traders must wonder what other mysteries lie ahead for the fall season.
In the theater of stock promotions, Get Rich Penny Stocks said the following on August 29, 2012: “SAPX at its current levels has explosive tendencies of 200-300% in just days and is ready to do it again!” The promoter received $5,000 in compensation. A total of 55 promotions can be found on Stockpromoters.com.
Seven Arts Entertainment finances, produces and licenses motion pictures for distribution in the United States, Canada and other world markets. The movies are also available for home videos and pay-per-view. The Hollywood, California, company was founded in 2002.