IGSM Group, Inc.(PINK:IGSM) is running up on heavy buying pressure without any official news or changes to support the rally.
The current price action reminds of a recent breakout that took place at the end of September. The only difference is that it had promising news back then as IGSM had completed audits on their books. Price retracted down after a short run-up back then, and is very likely to follow the same pattern once again.
The trading remains higher than usual for now and the low float allowed for rapid price appreciation. The stock also made it on several public penny stock watch lists, adding to the commotion and luring in additional buyers.
Since there are no official news, and the company has recently disclosed their fundamental to be of little value, the share price roll down is inevitable once the steamrolling wave of buyers exhausts. [BANNER]
Filed with the OTCmarkets.com, IGSM’s quarterly reports depicts a heavily leveraged balance sheet, with liabilities nearly ten times larger than total assets. The business is taking serious losses from operations and is relying of funds raised through debt funding.
The company is officially on their way to become a fully transparent reporting entity, but the recently published financial reports already show the current market cap of over $1 million is not justified. Filling reports of adversely performing business is not likely to help stock performance.
