Inova Technology, Inc. (OTC:INVA) Reaps Benefits of a PR Campaign
Inova Technology, Inc. (OTC:INVA) repeats the pattern of many penny stocks: to start trading more vigorously with the new year. The first four months of the year marked record after record, until Tuesday, when the ticker added more than 77% to $0.0064. This is not an unusual feat for a double-zero stock, and it may mean a promotional effort may be behind the increased interest, or possibly pumpers would be flocking to the stock soon. 
For all its ambitious posing, INVA is an IT service company, offering connectivity, storage and intellectual services. While the demand for those things is ever high, let’s see where this has taken the company in financial terms: 
- $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
While the company is clearly very active, it is pressured by debt and expenses, and only time will show if it can handle the liabilities without resorting to dangerous instruments such as stock conversion. The company is relatively underpriced, at $667,000, with 105 million shares outstanding. But at double-zero prices, anything can be expected. More than 80 million shares were bought up in the past two days, and the climb started at $0.0020, more than tripling. But the stock is also capable of returning to lower positions. In the past three months, INVA moved between $0.02 and $0.002.
Currently, INVA is not in an active promotion, but we may soon intercept a message. Still, the company is active with press releases and this increases interest in the stock, which is accessible for a fast and potentially winning bet. The most recent piece of news is that INVA completed $900,000 worth of projects through its subsidiary, Desert Communications. Other press releases are in the same vein, stating that the company secured projects for up to $30 million.
The more active and more interesting press releases, pointing how INVA could rely on high revenues, started at the beginning of the year, coinciding with the spike in activity. So, the latest climb may be the effect of an intentional campaign. The company has few insiders, mostly officers, who bought at $0.02 or $0.01, quite above the current market price. Still, a pump could take INVA back over those levels.
The resources and activities of INVA place it well above another recent IT pump, Warrior Girl, Inc. (PINK:WRGL). This pink sheet advertised itself as a greenhouse for new web projects, expecting to earn from their popularity. But the pump for WRGL was short-lived, and it quickly returned where it started, to $0.003. A similar thing may happen to cheap INVA, a sharp correction as investors try to shed the millions of shares.
