
Large crash of nearly 20% on Thursday marked the second serious profit taking over the past two months. Immunosyn remains a large gainer, with price 10 times larger than recorded a year ago, but the base for growth is no longer there to support additional gains.[BANNER]
OTCBB traded IMYN was never a company with sound fundamentals – their only worthvile assets were licenses to distribute SF-1019 drug product used to treat inflammatory demyelinating polyneuropathy, diabetic neuropathy, and diabetic ulcers. The uptrend in price was ignited by rumors on change of control in the late 2009. Though later officially denied by management, price action had already picked up.
Immunosyn has nothing to show on their financial statement’s that could support the current price level:
- Heavy leverage with barely any assets at all
- No revenue
- Losses from administrative expenses
- Additional cash always drawn from borrowings, ensuring even more leveraged balance sheet
All that can be seen, IMYN stock delivered as a ten bagger, now the profit will be taken with the help of those still expecting some upward action. Technically, the situation is similar to a double top pattern – bulls tried to drive the price higher, but failed twice. Most often this is followed by a trend reversal as bears take over.
Since this is a penny stock, the sell-off could be very aggressive and swift.