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In last trading session, the stock price of Eline Entertainment Group, Inc. (OTCMKTS:EEGI) gains more than 33% to close the day at $0.00160. The green close came at a share volume of 26.13 million compared to average share volume of 5.34 million.

The management speaks

A couple of months ago, Mr. Emmanuel Gyamfi, who is the interim CEO of Eline issued a letter to all its shareholders, wherein it revealed that he has received many inquiry emails about the firm’s stock being offered in the open market. Through this letter, the CEO took the initiative for helping shareholders know what actually the story with stock dilution is. The price fluctuation and stock selling can be stated as a result of a big plan that shareholders will be delighted about.

The CEO of Eline stated that the volatility recorded in the stock highlights that a turnaround in structure is around the corner. He added that the first issue he would like to resolve is whether or not the stock selling through Market Makers is a sign of dilution.

The status

Gyamfi reported that there is no stock dilution happening for the company. Eline boasts a float of close to one-third of its outstanding shares. It suggest there are adequate restricted shares, and since the firm has not opted for many stock issuances, a large chunk of them is just twelve months old. This shows investors are within their privileges to sell the shares.

In fact, the stock of a non-reporting entity are generally routed through two market makers (VFIN and VNDM) as they accept stocks in certificate form. However in last few years, the two entities have extended their activities scope. It is important to consider this fact before coming to the inference that stock sale through market makers VFIN and VNDM are routinely negative. The course has transformed and so has the concerns.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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