IMSC surged 71.67% and closed the trading at $0.515 for a share. Trading volume was over 5 million shares, the heaviest since January this year. It looks like the spectacular and unexpected jump up happened on some buyout rumors about the company, and on IMSC being mentioned on CNBC among the favorite picks of a hedge fund portfolio manager.
The TV report points out Implant’s chemical-based technology to detect explosives, the company’s “significant market share” in China and India and says that a TSA approval should be expected that will allow Implant hit the home market next year.
Although it is no news that hedge funds invest in highly risky and speculative stocks, it is actually a very rare event that a pink sheets company gets recommended in such a way without any announced recent developments of the company, which in turn made traders believe that something is running behind the scene. IMSC might be actually aiming at a multi-billion dollar market, but the fund might also be just speculating.
The latest SEC filings of the company concern its inability to file timely its quarter report for the three months ended this September. Maybe it is also worth mentioning that the company has not filed yet its annual report for the last fiscal year which was already due months ago. In addition, recently Implant announced that its three previously filed quarter reports should not be considered reliable due to issues raised by the company’s independent accountants.
Even though unreliable, the latest available financial results are for the quarter ended March 2010, showing that Implant has twice more liabilities than assets (half of the assets consisting of goodwill), has increased the net loss and the sales were not growing in a stable way.
