For quite some weeks the stock price of BIONOVELUS INC (OTCMKTS:ONOV) barely moved and often recorded trading sessions wherein not a single share traded on the counter. However, things have been extremely different lately, as the stock is back on traders’ radar. The stock has been moving up on the charts on heavy volumes.
The pumps
It is not all surprising when a paid promotional campaign with a disclosed compensation of $100,000 leaves such a deep impact on a certain stock. The shocking factor is that most of the investors don’t even care to analyze Bionovelus’ fundamentals before putting their funds on the line. Here is what the company reported at the end of 2Q2015. As per the report, Bionovelus hardly had some cash in its books. The total assets were $1.1 million while cash reserves stood at just $7,000.
The total liabilities were no less than $1 million whereas the revenue was zero. It is really disappointing to know when investors tend to ignore such horrendous financials and just invest their money. The net loss came at $30,000 in 2Q2015. All the numbers in balance sheet screams “BUYER BEWARE”, especially considering the fact that company already performed a 1-for-750 reverse stock split in its recent history.
The concerns
So, the financial report pops the real concern. How long can Bionovelus stock gain on the promotional hype. On Monday and in very next session, the stock closed deep in green, and is now trading close to $0.087. So far, so good, it remains to be seen how the stock will fare in the coming rest of the trading session in week. The fact that cannot be ignored is the dismal numbers included in the balance sheet fails to back the massive market cap of $5.61 million of the company.
In last trading session, the stock price of Bionovelus declined more than 52% to close the trading session at $0.087.
