Intertainment Media Inc. (CVE:INT) (PINK:ITMTF) seems like it could become a good short-term buying opportunity – the latest news from the company might create short squeezes.
INT share price bounced up the vague support at 66 cents on Thursday. The trading volume was weak on the way up, but it still brought attention to the stock and traders saw a promising morning spike today.
The price was influenced by news of questionable importance. Intertainment said yesterday the company reached an important milestone – one of their programs, KNCTR, surpassed 750 thousand unique user installations.
The software is directed to provide easy access to entertainment and communication services, including various news, shows and other media. The whole news release actually looked more like an advertisement for the product than a meaningful development. The revenues from the product rely on premium subscriptions and the data for those was not disclosed.
Even though the news created some buying pressure, the effect will likely be short-lived. The stock price is in a downtrend and has no strong support until roughly 45 cents. That is 43% lower than the current share price of 79 cents.
The stock of Intertainment is rather overvalued right now – the company holds $192 million market cap (according to finance.google.com) but has only $2.7 million net tangible worth. Quarterly revenue is basically flat at roughly $1.2 million and INT is losing around $2.37 million every three months. The only thing that helps to sustain such a high market valuation is their flagship product – a real-time translator software Ortsbo.
