In Phonic, Inc (INPC)

[kermit42]

In pinkyland, a R/S would be a strong contender. I'm hoping NASDAQ-land is different. Others here understand the company much better than I and maybe someone else will offer a better summary than I can. I'm here primarily for the chart "bottom bounce" play.

The IBOX has lots of good information, but as I understand things, the previous management was lousy and drove the company into the ground. About a month ago, they defaulted on a loan (that's what caused the big 1-day price drop). One of the institutional stockholders bailed and shorts took over, driving this further down.

The company replaced management and the new team is trying to turn it around.

As things stand, 80% of the stock is held by insiders and institutions, leaving only 20% for the active float. Meanwhile, there is a short position of almost 40%.

Some quick math here tells me that all they have to do to get this back up in the multi-dollars is send a positive signal to the market and the resulting short-squeeze will put us back where we belong. Given INPC's history of PR's every 3 weeks or so, we are overdue for one.

A reverse split will not help the situation, but it will infuriate the institutional investors and attract more shorts. Doesn't mean it won't happen, but if they do, then bankruptcy is next on the docket.