TouchIT Technologies, Inc. (OTC:TUCN) Spikes on Day Trade Alerts
TouchIT Technologies, Inc (OTC:TUCN) is a niche technology company that recently shot up by 50%, ending among the gainers for the end of last week over several promotional emails. Since the company shows high interest, we may look closer and see how the company’s value measured to its stock price. 
On Friday, TUCN traded with volumes 10 times higher than a regular day and added more than 55% at the end of trading. The company offers an expansion to touch-screen products- larger sensory screens fitted as blackboards or information tables. Its products are in no way unique on the market, but they show some success on the market and boost the company’s reserves. TouchIT holds the following financial strengths and weaknesses: 
- $10,595 cash
- $718,105 total assets
- $685,609 current liabilities
With a market cap of just around 2 million dollars, the company is not as overpriced as other small cap businesses, and for the past year traded between $0.005 and $0.028. The low price of TUCN allows for somehow dramatic moves of the ticker on renewed interest mostly around the announcement days for financial results.
The products of TouchIT are highly specialized and ship out directly from warehouses to schools and end users, and its production facility is outsourced to Turkey, thus easily shipping to European markets. The company’s website states there are distributors for the company’s boards all over the world, for yearly sales reaching up to $3 million in 2010 and up to $1.5 million in 2011. The TouchIT products are not unique and hardly rely on mass distribution, as other manufacturers rely on the same niche, and this may be a risk to its income.
The TUCN ticker was mentioned in free promotional mailings, touted as a day-trade bet because of the very low price which may react with dramatic spikes to increased volume. With a small free float, the pumpers may manage to create big days for this company, but we may expect the growth to reverse very quickly. The promoter, Damn Good Penny Picks, is a one-time entity belonging to stock picker Jeff Mirkin, who also runs http://www.activepennystock.com.
Tech companies are often the pick of pumpers with a longer-term agenda, where the rise in price may last for a few days. One of the latest active tickers, NanoTech Entertainment, Inc. (PINK:NTEK) jumped significantly and started to correct in high-volume selling. In the case of promising companies and new technologies looking good on paper, it is best to estimate your own taste for risk before incurring serious losses.
