Pump for IMD Companies, Inc. (OTCMKTS:ICBU) Dries Up, Price Slips by a Fifth
The pump emails targeting IMD Companies, Inc. (OTCMKTS:ICBU) came to a sudden halt yesterday. No new touts trickled in and the share price of ICBU dropped over 19%, stopping at $0.13. Share volume decreased significantly compared to the previous two sessions, at 9.3 million shares changing hands.
The ticker slipped almost immediately as trading began. After dipping nearly 40% from the open, it recovered and ended the session mostly flat, three cents in the red. The disproportionate amount of hype generated around ICBU‘s announced entry into the marijuana industry coupled with the support of promoter emails sent the ticker sky-high after initially failing to make it pop in early January.
Nearly 30 email touts advertising ICBU, both free and paid, landed in our database since January 9. However, it seems promoters have left ICBU on its own now. The last email came on Wednesday morning and announced that promoter Penny Stock Rumors has pretty much had its run with ICBU and was about to bring up a new sub-penny pick.
It seems the news touching on ICBU‘s rather bold acquisition plans combined with the magical M-word were not enough to prop the price any higher. The ticker has climbed awfully high in an awfully short span of time and there’s plenty of air below its current perch. If the company’s last reported financial situation was more promising, the climb could be justified to an extent. However, ICBU last posted $2 thousand in cash and logged net loss of $292 thousand for the first three quarters of 2013.
Its latest announced acquisition target is a company that reportedly generates $2.2 million in annual revenues. How ICBU intends to finance this acquisition is not made clear but further issuance of stock is one option. The company already issued 100 million restricted common shares for a 51% stake in a hydroponics business, upping its OS count from 161 million to approximately 260 million.
With promoters abandoning the ticker and no new PR coming through, ICBU may be headed for more rough days. The ticker is currently trading another 15% down on much weaker morning share volumes.
