Southern ITS International, Inc. (OTCMKTS:SITS) Sets Eyes on Penny-Levels
On a slower day, double-zero bids sometimes surface. This is the case of recently promoted Southern ITS International, Inc. (OTCMKTS:SITS), which added more than 65% to $0.0071 on dollar volumes above $227,000, a significant sum for a deeply underpriced ticker. 
At that price, SITS could rise even without a promotion. The latest news from the company are from September 12th, when the company announced a decrease in its outstanding shares as nearly half were returned to treasury. Daily trading is usually of a few million shares per day, although in the past three days buying easily passed the 50 million shares mark. 
SITS is strangely underpriced for a company offering security services. These companies are usually well-supplied in a world more and more concerned about crime and terrorism threats. Still, this activity left SITS with a small, though solid collection of financial strengths:
- cash: $145 thousand
- total current assets: $438 thousand
- total current liabilities: $1.1 million
- revenues: $948 thousand
- net income: $249 thousand
The only problem is, even selling widespread and much-demanded electronic security systems, a stock below a penny is inherently volatile. There is some hope for SITS, which started with a high price of a few dollars years back, but so far the climb is miniscule, and it is easily seen the stock has been drifting sideways at its extremely low price for more than a year and a half already.
Another sub-penny that returns for a while is Latteno Foods, Inc. (OTCMKTS:LATF), a food company turned medical marijuana dispenser. LATF slid down 20% after one good day, to stand at $0.0012. LATF had a long slide in the past weeks, but grew by 100% as buyers appeared when they perceived a bargain at $0.006.
Below a penny, classical pumps happen, and the scenario is easily seen in the graph of Cal Bay Int’l Inc. (OTCMKTS:CBYI). The ticker was lifted up six times, from triple zero prices, peaked at $0.003 and since then lost about 50% of its value.
When it comes to SITS, the share retirement was considered a good sign for an attempt at strengthening the company’s structure, to reflect a solid security business. There are expectations that SITS could grow to the pennies level. Opinions on message boards are wildly optimistic. The only trouble would be that below the penny, SITS could still go through a correction for profit-taking, as it did on September 13th, paradoxically the day of the promotion.
While SITS is accessible enough, that is not a guarantee of sustainable growth. There might be enough justification based on projects and upcoming earnings that may match a stock price. But keep in mind that SITS may move beyond any reasonable level, and avoid investing if you cannot afford deep corrections.
