Joymain International Development Gp Inc (OTCBB:JIDG) cannot be termed as highly traded stock on the OTC market. However, few weeks ago, it suddenly fetched the attention of investors and managed to climb from $0.25 per share to $0.70 per share in just few trading sessions. Unfortunately, it then declined and just two days later, it is trading close to $0.40. It managed to post a rather remarkable recovery, though. In last trading session, the stock price of JIDG jumped more than 51% to close the trading session at $1.30. The gains came at a share volume of 186,225 compared to average share volume of 84,827.
The momentum
The strong gains of Thursday came after Joymain posted gains of almost 19% on previous trading session. The dollar volume was more than $300,000 which is again an achievement for JIDG stock that has some severe liquidity issues. So, despite the up and down, the company does appear to be recording gains, better than other OTC counterparts. Already few people received a chance to make profits by investing in stock.
The performance
The reasons behind the sharp gains are difficult to find, but it is equally applicable to sharp decline recorded in last week. There is no significant news that supports such kind of volatility in Joymain stock. The latest quarterly report for the quarter ended January 2015, came almost a month ago. As per the report, the company had cash of $734,000. The current assets came at $1.2 million while current liabilities stood at $94,000. The quarterly revenue was $1.3 million and net loss for the quarter was $13 million.
The implications
It was the first quarter when Joymain reported revenue generation, and from the same perspective the sales figure looks good. It appears that the decision to commence selling Yolexury products was right. Moreover, there is cash on the books and there is no toxic debt worth worrying about.
