If you are either a swing trader or a long-term investor, then the recent market run of Ironclad Performance Wear Corporation (OTC:ICPW) cannot have gone unnoticed for you.
Last Friday, ICPW edged up $0.025, or 9.09%, to $0.30, its fourth rise out of the last five sessions and highest score for the last 36 months. A total of 205,551 shares of common ICPW stock changed hands, up 180% from its daily average trading volume.
ICPW’s latest press release came up on Feb. 15 when the producer of high-performance task-specific work gloves introduced a web-exclusive offer of technical performance gloves for outdoor sports and activities. Last year, ICPW, which pretends to be a recognized leader in this market, signed an exclusive license agreement with the Coleman Company regarding the production of high-quality gloves under the Coleman brand.
The company’s latest 10-Q report covers the quarter ended Sept. 30, 2011. According to the report, ICPW’s financial condition at the end of the third calendar quarter of 2011 rests upon:
- cash reserves in excess of $850K vs. $1.07M a/o Dec. 31, 2010;
- $9.5M in current assets, up 15% from Q4 2010;
- $9.95M in current liabilities, up 15% from Q4 2010;
- quarterly revenue of $5.7M as opposed to $3.4M accumulated in Q3 2010;
- net quarterly income of $576K, up 309% on an annual basis.
Although ICPW’s current ratio of 0.95 still designates a working capital deficit, the company will soon close its working capital gap as long as it succeeds in multiplying its revenues. In the light thereof, there is little wonder that ICPW’s exceptional chart run is anything but a storm in a teacup.
