“Today may be the day for ISIM”. This is how an iHub poster reacted against the latest promotional campaign in favor of Insight Management Corporation (PINK:ISIMD). Currently evaluated at at least $5 thousand, the advertising program is expected to give ISIM stock a boost for the next couple of sessions.
Last Wednesday, ISIM stock closed trade at $0.11, gaining 10%. However, investors’ interest in the stock appeared to be little or none as barely 1600 ISIM shares changed hands, which is way below the turnover of 55 thousand generated two days ago. Since the promotional wave started flooding investors’ e-mails last night, it will most probably aim at capitalizing on those 10%. Contrary to all expectations, however, ISIM stock failed to go up. What happened on the two subsequent sessions, i.e on Friday and yesterday, exerted zero influence on the price of ISIM stock. Although the aggregate volume generated in the those sessions exceeded 40 thousand, the price of ISIM stock has remained unchanged at $0.11.
Occupying the green technology industry, ISIM claims to be fully committed to offering sustainable solutions for land use. The company’s core activities are centered around acquisitions in the renewable energy sector. Until recently, the company was a regular SEC filer. Last month, however, it submitted a notification of late filing regarding its 10-K annual 2010 report. Now that the extension period has come to an end, the report in question is still nowhere in sight.
Yet, the 10-Q form covering the quarterly period ended Sep. 30, 2010 has been available to the general public for quite a while now. According to the consolidated balance sheet, ISIM had:
- a negative working capital of $850 thousand, with only $228 in cash;
- zero revenue, not only for Q3, but also for the cumulative nine-month period ended Sep. 30;
- a net loss of a staggering $5.4 million as compared to $163K incurred in Q3 of 2009.
The unenviable financial health of ISIM explains the lack of regular corporate updates. Most probably, the company will be relying on both promotions and dilution in order to raise the capital it needs in order to continue as a going concern. Given that the total amount of authorized stock has remained undisclosed, ISIM stockholders stand the high risk of being trapped in a never-ending dilution.
