How Long Can BioNovelus Inc (OTCMKTS:ONOV) Ride The Pump

[[tagnumber 0]][[tagnumber 1]]For quite some time the stock of BioNovelus Inc (OTCMKTS:ONOV) was barely being traded and often recorded sessions in which not a single share changed its owner. Things have been quite different lately, as we see the ticker climbing the charts in price on increased volumes.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]It’s not strange when a paid promotion with a budget of $100 thousand has such a profound effect on a certain stock. The surprising thing is that most people don’t even bother to check the company’s fundamentals before they put their money on the line. Here is what [[tagnumber 6]]ONOV[[tagnumber 7]] had to show at the end of the second quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $7 thousand[[tagnumber 13]] [[tagnumber 12]]total assets: $1.1 million[[tagnumber 13]] [[tagnumber 12]]total liabilities: $1 million[[tagnumber 13]] [[tagnumber 12]]revenues: ZERO (since inception)[[tagnumber 13]] [[tagnumber 12]]quarterly net loss: $30 thousand[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]And so, this brought the real question. How long can [[tagnumber 6]]ONOV[[tagnumber 7]] ride the promotional hype? Yesterday we saw the ticker add another 11.11% to its value and it closed the session at $0.17 with a total of 1.18 million traded shares and a daily dollar volume of $181 thousand.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]So far, so good. Today’s session, however, has started rather badly with [[tagnumber 6]]ONOV[[tagnumber 7]] dropping as low as $0.105 in early trading. At this point the ticker is sitting at $0.1295, or 23.82% below yesterday’s closing price and things don’t look like they are going to get any better.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The fact is that the balance sheet can’t back the market cap of the company, which is sitting at $11.91 million even after the current drop in price. Be sure to do your due diligence and weigh out the risks before making any decisions regarding [[tagnumber 6]]ONOV.[[tagnumber 7]][[tagnumber 2]]

You may also like...