Inova Technology Inc (OTCMKTS:INVA) Going Up and Down The Chart
After the big success for the stock of Inova Technology Inc (OTCMKTS:INVA) in the June 11 trade session when they gained 138% in price, yesterday was a huge disappointment and the signs that this is a risky investment choice show in full force.
Consequently to the big gain that INVA‘s stock had when reaching $0.0031 the ticker was pushed down heavily in yesterday’s trade session. Right after investors started to give more attention to the company’s stock the upwards movement seized and gave way to a plummet of 58% crashing the stock from its previous level of $0.0031 to $0.0013.
This was probably due to the fact that there was a massive amount of stock being dumped in the streets in the peak of the promotional campaign, which appears to be carried out for free by the newsletters that usually send out paid promotional alerts. With an average volume of around 27 million shares the amount that changed hands on June 11th’s and yesterday’s trade session was a total of 385 million, or 167 million and 218 million shares respectively generating a total trade value of $727 thousand for the 2 days.
It just seems like they have a lot of trading going on, but this is probably because at the moment they are heating things up with more hype from press releases. They have filed for a 100 for 1 reverse split and are awaiting FINRA approval approximately around June 17. INVA stated in the filing that they are doing this in an attempt to increse their stock price and attract investors. Well, they seem to have got peoples attention just by filing for the split as we can see in the massive volumes of traded stock.
The financial situation of the company, as mentioned in our previous article is not very good, because they have accumulated a lot of debt, but at least they are making good revenues and have a decent amount of cash on hand. For those of you who haven’t followed our coverage on INVA here is a quick recap of the numbers of prime interest from their latest quarterly report covering the period ended January 31, 2013.
- cash: $249 thousand
- current assets: $1.6 million
- current liabilities: $20.6 million
- quarterly revenue: $2.5 million
- quarterly loss: $3.5 million
As we stated earlier, the company has a lot of debt, but at least they have some good news recently having acquired a number of contracts with different independent school districts with contract values ranging from $643 thousand to $4 million. Will they be able to make it in the long term? It seems they have the momentum in terms of revenue, but still, only the future will tell.
Today INVA started off well at $0.0012 and are at a high of $0.0013 and they might be heading for recovery. Another company which we covered earlier and is headed in an upwards direction in today’s trading session after it crashed heavily yesterday is Sitoa Global Inc. (OTCMKTS:STOA). They started lower than yesterday’s close, but quickly gained 12% and are now traded at $0.0045 per share. Unfortunately for Vitamin Blue Inc (OTCBB:VTMB), the other company that crashed badly yesterday isn’t managing to go anywhere, but stays level with yesterday’s price of $0.0064 at close despite the fact that they opened at $0.0071.