Anastas Gegov

How Long Can BioNovelus Inc (OTCMKTS:ONOV) Ride The Pump

by Anastas Gegov September 2, 2015

For quite some time the stock of BioNovelus Inc (OTCMKTS:ONOV, ONOV message board) was barely being traded and often recorded sessions in which not a single share changed its owner. Things have been quite different lately, as we see the ticker climbing the charts in price on increased volumes.

 

It’s not strange when a paid promotion with a budget of $100 thousand has such a profound effect on a certain stock. The surprising thing is that most people don’t even bother to check the company’s fundamentals before they put their money on the line. Here is what ONOV had to show at the end of the second quarter of the year.

 

  • cash: $7 thousand
  • total assets: $1.1 million
  • total liabilities: $1 million
  • revenues: ZERO (since inception)
  • quarterly net loss: $30 thousand

 

And so, this brought the real question. How long can ONOV ride the promotional hype? Yesterday we saw the ticker add another 11.11% to its value and it closed the session at $0.17 with a total of 1.18 million traded shares and a daily dollar volume of $181 thousand.

 

So far, so good. Today’s session, however, has started rather badly with ONOV dropping as low as $0.105 in early trading. At this point the ticker is sitting at $0.1295, or 23.82% below yesterday’s closing price and things don’t look like they are going to get any better.

 

The fact is that the balance sheet can’t back the market cap of the company, which is sitting at $11.91 million even after the current drop in price. Be sure to do your due diligence and weigh out the risks before making any decisions regarding ONOV.

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