Infinite Group, Inc. (OTC:IMCI) is an IT company headquartered in Pittsford, New York. The stock of IMCI usually trades on low volume and has significant price swings. Today, it may see more action than usual as some promotions kick in.
Yesterday, IMCI closed flat at $0.115 after 24 thousand shares had changed hands.
A promoter who discloses a $40 thousand compensation calls IMCI a “$6.5 million sales monster.” This refers to the sales of IMCI for the first nine months of 2011. The promoter expresses disbelief that IMCI is trading under $0.20.[BANNER]
It may indeed look odd that a company with quarterly revenues around $20 million trades so low. The price could be explained by the fact that IMCI has reported revenues in this range for more than two years now, but hasn’t been able to turn a dime of profit.
On the other hand, the losses reported by IMCI are not nearly as severe as a lot of other OTC companies. In addition, IMCI has demonstrated some volatility in the past, so the paid promotion could cause some trading activity today.
Even if it does, though, traders should be careful how they play this one. Volatility goes both ways.
