Integral Technologies, Inc. (OTCMKTS:ITKG) Spikes Yet Again
Few things in the investment world can give you as much thrills and spills as penny stocks. Take Integral Technologies, Inc. (OTCMKTS:ITKG), for example.
Back in March, the company announced that its Asian clients, Chang Rim, are expecting a large order (which, in turn, suggested that they’ll need a lot of ElectriPlast), and ITKG shot up. Volumes exploded and the ticker smashed through the $0.70 mark with ease.
Yesterday, nearly five months later, something similar happened. The company said that Chang Rim have placed the largest ever purchase order for ElectriPlast and the ticker was sent on another run. ITKG broke above the $0.70 barrier mere minutes after the opening bell and it went on to finish the session with a price of $0.73 (about 21% in the green).
All in all, ITKG has the habit of providing great profit opportunities every now and then. Unfortunately, the performance between the spikes is not quite as exciting.
After surging above $0.70 back in March, ITKG continued for a short while and it even managed to inch its way up to more than $0.80 a couple of days later. It soon became obvious, however, that the pressure was getting the better of the ticker and ITKG embarked on a long slide, bottoming out at $0.52 per share a few weeks ago.
To top it all off, while sessions like the one yesterday are indeed quite exhilarating, a quick look at the historical records shows that investors tend to lose interest rather quickly and the overall volumes are far from impressive. So, what can the people behind ITKG do in order to change this?
Yesterday’s order, it must be said, is a good start. Unfortunately, at the moment, nobody can say how good. The press release did say that Chang Rim expects to use quite a lot of ElectriPlast, but it didn’t say exactly how much money ITKG is going to get from the deal.
And that’s rather important because so far, the company has failed to impress us with some solid figures in its financial statement. Here, for example, is what the balance sheet looked like at the end of March:
- cash: $306,860
- current assets: $382,165
- current liabilities: $1,122,186
- quarterly revenues: $45,450
- quarterly net loss: $1,155,968
The revenue, as you can see, is dismal, and only a tiny portion of it is generated from the sale of ElectriPlast. In fact, after three months of operations, ITKG only logged $2,950 in revenues from their revolutionary conductive materials. That, for the statisticians among you, means an average of about $32 per day.
If the new purchase orders are big enough and if the people behind the company manage to keep the expenses at bay and turn a profit, they will not only patch up the balance sheet, but they will also have the chance to prevent some dilution. The company has some debentures on its books that, if not repaid with cash, will be converted into stock at a discount. And we all know what this means.
So, the news is definitely good and the $1.7 million volume from yesterday testifies that investors are excited about it. Guarantees around the future, however, can not be given.
