IMD Companies, Inc. (OTCMKTS:ICBU) Pumps and Hype Finally Yield Results
After an uphill struggle that stretched through most of January, yesterday IMD Companies, Inc. (OTCMKTS:ICBU) finally exploded. The slow volume accumulation and choppy upward movement escalated in a full-blown frenzy and ICBU closed the day 166% up on unprecedented volume.
Obviously, ‘marijuana’ is the word of the new year, as ICBU decided to join the ever-growing ranks of pot stocks. The company announced its intentions to make a move in the sector back in late December. Come January, ICBU started pelting its previously quiet PR feed with acquisition news. The pump emails followed suit.
Starting on January 9, which was also the day of the first pot-sector acquisition news from ICBU, nearly 30 pump emails targeting ICBU have been sent to date. The first few touts were free but were followed by paid pumps from Stock Freak and Stock Publisher with at least two separate paying parties.
The combination of tout emails and news focusing on marijuana had an immediate effect on ICBU stock, kicking it into heavy trading. ICBU went from days with zero daily share volume in December to millions of shares traded per day.
What do the books say about ICBU? Not a lot that could rouse such wild enthusiasm. The last published report of the company covers the quarter ended September 2013 and contains the following:
- $2.2 thousand in cash
- $91 thousand in quarterly revenues
- $233 in quarterly net loss
ICBU acquired 51% interest in an enterprise producing a hydroponic environmental controller against 100 million common shares. Even though the shares issued are restricted according to the press release, they still constitute significant dilution of ICBU‘s OS count of 161 million shares as of September 2013.
ICBU‘s latest press release concerns a planned acquisition of a company that generates over $2.2 million in annual revenues, if the announcement is anything to go by. Even though the acquisition is still at a ‘letter of intent’ level, the PR never explains how ICBU intends to pay for it.
Marijuana is still a high-risk investment considering how volatile the sector is at the moment. Factoring in that ICBU is a newcomer to the industry and that it has been targeted by tout emails, investors should do well to perform their own due diligence and tread carefully.
