ISIGN Media Solutions Inc. (CVE:ISD) (PINK:ISIZF) stock price has corrected up from the recent collapse, but traders should not get their hopes up as the rally is still unprecedented.
Share price jumped more than 10% on Thursday carrying along a trading volume of 4.42 million, which was 4 times the average of 1 million. This was a follow-up spike on a recent technical stock breakout, which also had no fundamental merit whatsoever.
During the first share price spike, the company advised on April 25 that there were no corporate changes that could have caused the run-up. The announcement seemingly dispersed the positive sentiment back then as the price collapsed the next day.
Right when the rally had expired, the company actually released news. In a press release, dated April 26, 2011, ISIGN presented a technology that allows delivering stock market quotes in real time to Bluetooth enabled mobile devises and smartphones.
However, since the services is free of charge, the announcement meant that no material changes should be expected.
The current price rally is just a shadow of the first one, and will likely end with a quick and large scale correction, just like the first time. Such a pattern usually unravels on stocks of companies that have no underlying fundamentals to support the increase in price. In this case the price is running up purely on rumors and a technical correction to the overextended downfall that followed the first rally.
