Shares of XSUNX Inc. (XSNX) are currently under pressure and are currently down over 50% since the start of the month. The stock is now accelerating down this morning and the shares are currently down another 13% this morning. There was some nice support at the $1 level and the stock is currently trading down below this level.
There may be many causes for this sharp decline. It could be the general market weakness is causing people to look for ways to take profits. This stock has been up more than 200% in the past year and I personally sold half of my position several months ago. There also maybe something fundamentally wrong with the company. There have been many questioning the validity of this company.
XsunX is still an early stage company that still hasn't produced any revenues and has a product that is still very much in beta. I knew this when I purchased the stock back in November of '05. I figured the company would be dead money until they actually started to produce some products and get sales. The sharp rise of the stock over the past year was a nice suprise, but I fully expected it to come back down to reality. I would not be suprised if the stock traded back down to the $0.50 range in the near future. I think the company is fairly valued at that price and I'm still planning on holding onto my remaining shares.
Update: I'm not able to type this post fast enough for the markets, the stock is now currently down more than 15% at 10AM.
Update 2: At 10:20AM the stock seems to have found some support at $0.94.
Update 3: Shares of XsunX have now turned positive at mid-day and the bounce off the support of $0.94 seems to have taken hold.
Update 4: What a day in XsunX. From the low today to the close represents a 30% move and a nice bounce off the $0.94 level.
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