During the last two trading sessions, the shares of InNexus Biotechnology Inc. (CVE:IXS), (PINK:IXSBF) were once again in great demand by investors on the TSX Venture Exchange (CVE). Otherwise, they continue their monotonous and maybe a little boring performance on the market.
For a month now, IXS fluctuates between the $0.03 and $0.05 price levels, without leaving this trading channel. In the absence of any official company announcements, excluding the latest quarter financial reports, it is maybe not such a big surprise. A little more astonishing are the periodic rises in the trading volume observed over the last three months. Friday’s turnover of over 7.3M shares was more than four times the daily average for the company.
One of the last important announcements by In Nexus Biotechnology Inc. (“InNexus”) was from the beginning of November. It spread really big news. The US government awarded the company a federal grant for the amount of $116.760 for projects related to the development of anti-cancer antibodies. Of course, such recognition from the American authorities is a great success for InNexus, and maybe this is one reason for the recurrent volume spikes.
We could search for additional clues about what is happening in the investor forums, where a huge discussion about IXS is going on. Some people there suggest that the periodic boosts in the volume might be related to an increased interest and a sector rotation in the Biotechnological industry. This has been confirmed by a financial post from two months ago related to the sector development.
Jeff Morphet, CEO of InNexus Biotechnology Inc., describes the periodic jumps in the stock’s trading activity as a “very weird event”. Morphet supposed it might have something to do with a pharmaceutical company making an informal offer to buy InNexus several months ago, but he was not willing to give further details.
If we rely on the latest financial reports filed by InNexus just before New Year, we could arrive at the conclusion that a significant rise in the share price seems quite unlikely. For the third quarter of 2010, InNexus declared a net loss of $974K, its total assets were well below the total liabilities and the cash at hand was only $16 636. This gives no solid ground to expect a more lasting appreciation of the stock in the near future.
