This past Friday, Sports Quest (OTCMKTS:SPQS) saw its stock go through a massive selloff as it ended up with a decline of as much as 39%. The magnitude of the loss was significant and at this point, investors perhaps need to work out if slide will continue or if there is any chance of a bounce back.
Market Action
On Friday, SPQS stock slumped 39% to $0.0022 with 10.26 million shares, compared to its average volume of 3.82 million shares. The stock moved within a range of $0.0022 – 0.0037 after opening trade at $0.0037.
Sports Quest (OTC:SPQS) Proudly Announces Entry in the Water Packaging Industry
Back on Friday the company announced that it had entered the water packaging industry. It is a massive industry and had a valuation of $181.7 billion in 2020 and is expected to hit $287.31 billion in 2026, which works out to a CAGR of 6.86%.
It is going to be a start-up water packaging project and Sports Quest had actually hired the services of the company AZ Water Co a Hiru Corporation Co for assistance regarding the same. In this regard, it is perhaps also important to note that Sports Quest had also managed to secure the financing that is going to be necessary for launching its second water packaging project.
However, it seems that the latest move from the company was not appreciated by investors and that was possibly the reason behind the massive selloff that was seen on Friday.
Key Quote
CEO Katie Gavin HIRU CEO has extensive experience in the water industry. Katie said “HIRU is operating at 100% capacity with our main customer Alkaline88 with 3 operating lines. Even when HIRU reaches 5 or 7 lines runing and operating on a 24-hour 3 shift cycle we will still have a backlog order that can fill many more lines. We as a company can either monetize on these orders or we lose them. By assisting SPQS we do not see them as a competitor but rather an outlet to outsource our overflow of business. Under the terms of the agreement, HIRU will be paid a small percentage of monies on every bottle filled as a “royalty” fee. Depending on the number of lines we ultimately end up with this could easily represent a prophet margin of several hundred thousand dollars per year perhaps even as much as $1 million.”
Traders Note
SPQS stock is trading below the 20-Day and 50-Day Moving averages of $0.0026 and $0.0026 respectively. Moreover, the stock is trading is the neutral zone with RSI stands at 45.
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