IC Punch Media, Inc. (PINK:PNCH) Selling Spills Over
It never rains but it pours, and the rainy Monday for IC Punch Media, Inc. (PINK:PNCH) spilled over into the next session, deepening sales and shaving off half the company’s value. The ticker went down 49% to $0.0061. 
The next few days will show if PNCH can generate enough trust with investors. According to a company’s press release, shareholders are extremely interested and required a larger venue to accommodate the company’s first annual meeting. The meeting will happen on Sunday, April 14th. Meanwhile, the company has seen no other promotion, rising only on renewed business interests and press releases. 
The penny stock, aiming at TV networks and web technologies, holds the following reserves:
- $5.2 million cash
- $40 million borrowed funds
- $3 million net income
The past year was extremely successful for PNCH, as the company reached 55 million US households through 35 partner channels by acquiring Punch TV. It seems the 2500% reported business growth happened so fast that PNC still posts its old website on the OTC site, where it offered financial services as a banking and investment adviser in the 90s and early 2000’s.
Otherwise, the company’s proposed online system, IC Places, so far does not offer anything unseen on the Web, or that could not be gotten from services such as Yelp. The next few days will show if the expansion of the TV business is incentive enough for buyers to return, beside the very obvious appeal of buying the dip for an extremely accessible, underpriced stock.
The problem with the PNCH shares are the 1.14 billion shares outstanding and a float of just 1.9 million shares. These holdings outside the market have enough power to turn the tides for the stock at any moment if the holders decide to sell. With daily volumes in the tens of millions, this is a highly realistic scenario. While the company sound more credible than other penny stocks, it is best to be cautious unless you are certain you could afford a loss.
Entertainment, a highly competitive and expensive business, has not brought luck to other penny stocks. Movie studios Gunther Grant, Inc. (OTC:GNGR) show what happens a while after the hype is over, hovering around a cent and acting as a vehicle for short-term, volatile bids.
