STRAGENICS INC (OTCMKTS:ASAB) Is A Penny Stock Runner

Today, we are delivering our take on a company that has surprised OTC market participants quite a bit recently.We are referring to STRAGENICS INC (OTCMKTS:ASAB), which is presented as a technology development and strategic investment company. Logo - STRAGENICS INC OTCMKTS:ASABThe market became interested in this company after its share price and volume commenced to spike without any particular reason.In just a few days, the stock price went from $0.0001 to hit the $0.0007 share price level, a 600% increase.But, there is more.The volume, which is never studied closely by the market participants, spiked up as well. We believe that volume is key in this type of small cap stocks, as it shows the market interest in the stock.In only one day, 1 billion shares changed hands.We don't want to say anything else before you check the following stock chart and form your own opinion.Have a look: 1 month chart for ASABBusinessStragenics, Inc. was founded in Florida on January 15, 2009. The company has merged and executed several transactions with different entities:

• On March 21, 2013, the company entered into a Share Exchange Agreement with Allerayde SAB Limited.
• On March 4, 2014, a new change of control occurred and Allerayde SAB, Ltd, sold its interests in the company and the previous management commenced to run its operations again.
• On December 1, 2014, the company acquired BakedAmerican.com.

The business objective of the company as stated on the OTC Markets website says that the company is "a technology development and strategic investment company providing guidance and investment for innovative, early stage technology-driven companies." Additionally, it is noted that the company is looking to acquire leading edge businesses and further the company's business plan.We have seen other listed companies with very similar business objective. As per our experience, the biggest catalyst is the type of company that is acquired. We should be very alert on the news released by ASAB. If the company elects to enter a sector that is growing at a fast pace, the share price could increase.What's going on with the share price? - Social MediaThe market did not release anything meaningful that could make the volume increase in such a way. Also, no new information was released on the part of the company. We checked the website of the company and the OTC Markets, and could not find anything.Thus, in our opinion, the share price movements should have been created by someone outside the company.Social Media?Yes, it could be one of the reasons. You know how this works. A few comments in some forums that many market participants read are enough to create some market expectations.In this case, we saw how some market participants became quite excited about the future market performance of ASAB.Have a look at it: STRAGENICS INC OTCMKTS:ASABThere were also some activity on the Yahoo Finance Forum, but we don't believe that many market participants noticed it. No big assessment of the trading was made in this chat.Share Stats - Low Float RunnerThere is another interesting feature in the company that many market participants may not know. The OTC Markets does not provide the amount of shares that are part of the float.Have a look: STRAGENICS INC OTCMKTS:ASABHowever, we conducted some more reseach and found out in the company materials that large stakes are owned by a few big shareholders. This means that the liquidity in the market may be very small and big market orders can really move share prices.Would this explain the recent share price volatility?Yes, if some big shareholder is trying to acquire shares in the open market, he/she could be pushing up the share price. A very good question is why he wants to acquire shares. We cannot answer this question with the information given by the company.Conclusion - NOLsCurrently trading with a market cap of $0.1 million, ASAB is an interesting story among small caps. However, we believe that many questions have still remained unanswered. The company needs to upload its financial statements for the last year so that more market participants become interested. There is an interesting feature to check in the financial statements; the accumulated losses hidden in the balance sheet. They could be tax deductible for a company merging with ASAB. Remember to check this fact when the new financials arrive, as many market participants will be checking this figure as well.To sum up, there are a lot of questions and a lot of volatility as well on this stock. We encourage readers to conduct some more research so that actions are made after forming a fully informed opinion.We will be updating our subscribers as soon as we know more. For the latest updates on ASAB, sign up below!Image courtesy of Wil C. Fry via FlickrDisclosure: We have no position in ASAB and have not been compensated for this article.