0images.jpgLEXON Technologies, Inc. (OTCBB: LEXO, LEXO message board) had another day full of promising news which in return boosted its share price quite a bit. It's a pity this penny stock is driven by such low volumes and only reacts to the news. Because of this, we need to determine the possible fundamental effect of all the recent developments.

First off the price had been abnormally boosted couple of weeks ago upon a merger with Paragon Toner Inc. That is an established business and should generate some value for Lexon. Moreover, Wednesday news came out Lexon has 7inkjet.com, another inkjet and cartridge related business. This was a second significant step towards a money providing business.

On the other hand, the recent share price reaction gives out the company is not yet worth investing in. As a public entity, they have reported no revenues, had almost no cash on the latest disclosure and are making acquisitions by issuing stock. Until some positive numbers appear on the financial statements, their stock is likely to retain the current characteristics as well.

There was a huge price reaction to the first merger. Some decline has been witnessed since, but the stock is still very volatile and what really matters it seems to trade in a specific channel. That channel seems to be quite strong and thus may allow swing trading. After all, the price has fluctuated between $0.06 and $0.09 for over half a month now. The largest problem here is the issue of quick entry and exit though.