IC Places, Inc. (PINK:ICPA) stock had been sliding down since the end of July last year, though just as it looked hopeless the stock suddenly gained a momentum and its share price surged up at market close yesterday. 
After that unexpected spike, the session closed with a 55.56% increase at $0.0014 for a share. The strong trading volumes on which ICPA stock price was kept near the yearly bottom are no longer there and during yesterday’s session about 18.8 million shares changed hands, still activity above the average for the past three months.
ICPA could not overcome any important resistance level yesterday, but the RSI reversed to point up and the MACD lines crossed, which may attract more trading today. Apart from the technical side, there is no fundamental new information that could make the share price go up. Unlike November last year, now there are not even promotions at hand.
News releases have also not worked out. The latest press release from IC Places came out at the end of December and it announced that the company’s newly developed Instant Restaurant Review Application were ready for download from the iTunes store. Following the initial hype, ICPA share price dropped to a 52-week low in a matter of three trading sessions.
The company’s last quarter report explains it all. With $33 in cash as of September 30, 2011, ICPA current debts exceeded $484,000, $349,000 of that due under convertible notes. Dilution risks are too high and may send ICPA stock even deeper in the sub-penny levels as the number of the company’s outstanding shares has already nearly doubled in the first nine months of 2011.
