Pump for Intellect Neurosciences, Inc. (OTCMKTS:ILNS) Peters Out on Day One
After months of trading far more thinly, yesterday Neurosciences, Inc. (OTCMKTS:ILNS) moved an impressive volume of over 670 thousand shares – a couple dozen times more than its average. Sadly, the early morning price action reversed direction and by the bell ILNS ended up 17% in the red. The only discernible reason for the commotion was a volley of new paid pump emails.
ILNS received a new wave of pump email, with all the pumps landing around the opening bell. A number of promoter bagged between $6,000 and $12,000 for their advertising efforts. At least three of the promoters were paid by a third party called TSX Ventures LLC – likely an attempt to obfuscate any Internet search attempts through mimicking the name of the Canadian TSX Venture Exchange. Another paying party mentioned in the promotional disclaimers is ALG Financial LLC.
To the disappointment of anyone who was hoping for at least a single day’s run, ILNS fell flat on its face within a couple of hours of spiking up. Paid stock pumps are bound to end in disappointment in the long run but they are particularly sour when the crash happens on the very first day of pumping and traps everyone who was hoping for a run.
If traders who bought in had so much as taken a cursory glance at the company’s balance sheet, they may have done some extra research before rushing in. Here is what the company’s latest quarterly for the three months ended March 2015 contained:
- $309 thousand in cash
- $311 thousand in total assets
- $31 million in current liabilities
- $1.2 million in quarterly revenues
- $4.9 million in quarterly net loss
The company is generating its revenues not through the sale of products but by developing and licensing its patent portfolio. Annual losses for fiscal 2014 and 2013 were respectively $15 million and $9 million.
With the pump stifled on its very first day, it’s unlikely that ILNS will soon repeat yesterday’s share volume very soon.
