I found an article on Canadian Business website dated October 28th of
this year that may shed some light on the situation:
Here is an excerpt from the article:
"To help fund its expansion, the company went public on the Nasdaq
Over-the-Counter Bulletin Board at US$1 a share in September.
Actually, Buck A Day didnt raise any money through the listingit
simply registered the 22.5 million common shares it already had
outstanding, along with more than four million common shares attached
to various unexercised warrants. But Buck A Day is now in the process
of raising (it hopes) between US$8 million and US$10 million in a
share offering thats available only to non-US residents."
The original stock offering raised no money for this company, it only
registered the stock available for sale. Without official news this
is only speculation, but some people may not have been aware of this
before they bought stock, and then got in a hurry to unload it.
Meanwhile, they are now planning to raise money with a secondary stock
offering. Doing this dilutes the value of currently offered stocks,
making them even less desirable. Their business model leaves much to
be desired as well...the article also states they've been losing money
ever since their inception in January 2000. And of course, a new
company needs to draw as much attention to itself as possible. The
fact that they have had no official release since the launch of their
stock reminds me of what my grandma used to say: if you have nothing
nice to say, don't say anything at all. No news at all is enough to
cause unease among investors, and can drop a new stock price very
In general, assessing the initial price of a stock is very difficult,
especially for over-the-counter stocks. The reason the price started
at a dollar a share was simply because the company said it should.
The market is now determining its real value, and while seven cents a
share might seem to be an incredible deal compared to the dollar a
share it was less two months ago, without a press release or some sort
of official information from this company, it will be very difficult
to determine what this company should be worth. And in a bear economy,
when left with no information to form an opinion, people are bound to
assume the worst.
Buck-A-Day Stock Chart
Google search terms used:
"buck-a-day" stock 2002