Inova Technology, Inc. (OTC:INVA) Almost Doubles on Publicity
A few days ago, Inova Technology, Inc. (OTC:INVA) jumped following a press release, and now it repeats the success, adding more than 88% to $0.0085. This is not unusual for a double-zero stock, which is immensely responsive to any shifts in investor interest. 
The latest news from the company state that INVA started working on a communications project worth $970,000 through its subsidiary, Desert Communications. The company claims it has a backlog of contracts, worth up to $30 million, and currently tries to work through them in due time. 
Here is the company’s financial situation, showing an ambitious, but debt-burdened business:
- $249,252 cash
- $1.6 million total current assets
- $20.59 million total current liabilities
- $2.5 million quarterly revenues
- $3.5 million net quarterly loss
So it seems INVA has enough projects to write about in press releases, and self-propel a growth in price and volumes. The company says it has a backlog of 15 clients with projects of various size. This may cause a long run for a rather underpriced company which has been modest about new stock issues. Still, the promoters are not interested, and they mentioned the company for the last time in 2011.
If INVA enters a feedback loop, its climb may strengthen, but as it usually happens, too much of a good thing could have a negative effect, and trigger sales to realize profits. This has happened to many penny stocks that otherwise held out well after the initial promotion.
But keep in mind that the higher volumes for INVA started in earnest in 2013, coinciding with more PR activity, so there may be interest disproportionate to the company’s fundamental business. Recently, we intercepted another ticker that broke out of very sluggish activity, Wireless Xcessories Group, Inc. (OTC:WIRX). The stock almost doubled in price to $1.66 on Wednesday, and on Thursday retreated a little on small-volume sales.
The next few days will show how INVA develops, but if it behaves like other double-zero tickers, it is best to stay away unless you can afford to lose your investment.
