BioNovelus, Inc. (OTCMKTS:ONOV)’s Surge Continues
BioNovelus, Inc. (OTCMKTS:ONOV) had a brief correction last Wednesday – but by the time the week’s final bell rand, it had regained its ground and then some.
Suffice it to say that the ticker has been going wild in the last few weeks, jumping on pumps, touts and hype – and now that the company has announced that its product is going to be tested by “major coffee growers in Guatemala, starting this week” one would expect that ONOV investors are going to be in for an even wilder ride.
Still, as boastful and optimistic as the company’s announcements may be, investors are advised to always keep in mind that we’re talking about an entity who had just FOUR DOLLARS to its name last time it reported.
The rest of the report didn’t impress either, because it looked like this:
- cash – $4
- current assets – $4
- current liabilities – $681 thousand
- revenues – ZERO
- net loss – $25 thousand
This is why we’d advise extreme caution when dealing with ONOV. Pump hype and hope and boastful announcements have done miracles to push the ticker upward, and as a result ONOV is now perched over the half dollar mark. However, no matter what the pumpers, or indeed – the company’s management claims, ONOV‘s actual achievements to date, as documented by its filings, do not support its current market cap of 44 MILLION.
That market cap is simply ridiculous, especially when the entity in question already has two monstrous reverse splits under its belt, both of which were performed in the last three years. The picture is horrible enough even without mentioning the fact that a significant portion of ONOV‘s debt takes the form of convertible notes that can be turned into shares of its common stock at undisclosed rates.
So what should investors take away from all of this? Our advice, as always, remains simple – do your own due diligence and take everything that pumpers and PR agents say with a pinch of salt.