Huge Dumping of ITonis Inc (OTCMKTS:ITNS) Stock
The saga of ITonis Inc (OTCMKTS:ITNS) continues with a new wave of pump emails from May 3. Then, a considerable amount of pumpers were touting ITNS and the results are similar to what we have already seen from them.
The pump that climaxed on May 3 shows a scary similarity with the previous pump of ITNS that we covered on March 29. The $0.055 price quickly started to fall until it reached $0.045 on abnormally high volume. The volume registered was a whopping 125 million shares traded compared to a 10 times lower avarage of just 12 million.
With this volume the stock registered $757 in total trade value. The disturbing thing is that this pump went exactly as the above mentioned one from the end of March. Then the stock registered a volume of 182 million shares traded coming up to $1.36 million trade value.
It leads one to think that the people that are paying for the pump emails are doing some serious dumping. The bad thing is that the scheme works and a lot of investors will be left empty handed. Now, let’s have a look-see at what the company’s financial state is according to ITNS themselves, as they havn’t filed any reports with the SEC from 2011.
As per the quarterly report covering the three months ended February 28, 2013 they had:
cash: $1.1 thousand
prepaid expenses: $914 thousand?
current liabilities: $369 thousand
net loss: $143 thousand
You might wonder why the question mark behind the $914 thousand in prepaid expenses is put there. Well, since they are filing their reports pursuant to the alternative reporting standard in OTC Markets they aren’t obliged to fill in all mandatory fields that have to be filled when reporting with the SEC. The problem that we had with that is the fact that these $914 thousand don’t really have a destination. It is not listed in the report what was prepaid for that amount of money that ITNS have listed as the bigger part of their current assets.
Another interesting figure in their report as we mentioned in our previous article covering ITNS is the fact that out of the $4.3 million net losess for the year ended November 30, 2012, $3.1 million were for executive compensation. We are still unable to figure out how the executives of a company that has no revenue have decided that $3.1 million is an appropriate compensation for their “work”.
Yet another disturbing thing is the fact that they are issuing a huge amount of shares, covering their expenses, while in the meantime shareholder stock is being diluted. It is even worse, due to the fact that out of over 600 shareholders the only 2 beneficial owners have 115.2 million and 70 million shares respectively which makes around 21% of the company’s shares.
This can already have changed and the insiders may have acquired a lot more, while selling what they already had in the huge dumping fiasco that followed the paid pumps of ITNS. Sadly the biggest expense of the company is for the salaries of the executives who seem to be running the company solely for their own profit.
With all that said ITNS‘s stock is really risky for people who don’t take the time to do their due diligence, however, experienced investors will most probably make a profit if they keep their eyes open for future pumps.